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Taxation and Income Inequality in Sub-Saharan Africa

Author

Listed:
  • Martin Ambassa Messy

    (University of Maroua, Ecoresearch)

  • Itchoko Motande Mondjeli Mwa Ndjokou

    (University of Yaoundé II-Soa, CEREG)

Abstract

In this paper, we examine which tax indicator among the weight of tax revenue and the tax structure reduces income inequalities in SSA. We use a model estimated in panel data using fixed effect ordinary least squares over the period 1992-2017. The model is inspired by the work of Martinez-Vazquez et al. (2012) and Dao and Godbout (2014). Our results reveal that the weight of tax revenue is more important in reducing income inequality in SSA than the tax structure used to collect the revenue. The analysis also shows significant heterogeneous results conditioned by corruption. The results appear to be robust to an alternative estimation technique.

Suggested Citation

  • Martin Ambassa Messy & Itchoko Motande Mondjeli Mwa Ndjokou, 2021. "Taxation and Income Inequality in Sub-Saharan Africa," Economics Bulletin, AccessEcon, vol. 41(3), pages 1153-1164.
    • Handle: RePEc:ebl:ecbull:eb-20-01094
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    More about this item

    Keywords

    Taxation; Income Inequality; Tax structure; Tax revenue; Fixed Effect;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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