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Tax Revenues Effects of Corruption and Governance in WAEMU Countries

Author

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  • Dramane, Abdoulaye

    (University of Parakou, Benin)

Abstract

Tax revenue mobilization constitutes one of the major challenges facing African countries in general and those of the West African Economic and Monetary Union (WAEMU) in particular to finance their various development programs. Thus, this article aims to analyse the tax revenues effects of corruption and governance in WAEMU countries. To this end, an econometric model is estimated using three relevant methods, namely, the fixed effects method, fixed effects with sample heteroscedasticity correction and the instrumental variables method on a panel of seven countries over the period 1996-2017. The findings show that governance positively affects tax revenues, while corruption hinders tax revenues from increasing in WAEMU countries. The results obtained have made it possible to suggest concrete actions in terms of economic policy implications with a view to increasing tax revenues in the countries of this area.

Suggested Citation

  • Dramane, Abdoulaye, 2022. "Tax Revenues Effects of Corruption and Governance in WAEMU Countries," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(4), pages 143-164, December.
    • Handle: RePEc:ris:jecdev:0007
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    References listed on IDEAS

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    More about this item

    Keywords

    Corruption; Governance; Tax revenues; WAEMU;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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