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Taxpayer behaviour and institutions in Sub-Saharan Africa

Author

Listed:
  • Roukiatou Nikiema

    (Ouaga II University)

  • Pam Zahonogo

    (Ouaga II University)

Abstract

Taxation is crucial for national governments to finance key public goods and services. But in developing countries, tax mobilization levels are quite low. This research analyses taxpayer behaviour in Sub-Saharan Africa as a result of weak institutions. Using the generalized structural equation modelling with Afrobarometer’s round 5 (2011/2013) survey data in 29 SSA countries, the results show that individuals’ attitudes towards paying tax are significantly dependent on the quality of institutions. More precisely, when the quality of institutions is perceived as good, individuals are more likely to pay taxes. Results also indicate indirect effects of quality of institutions across different institutional components. Individuals’ perceptions on cheating, on the quality of public services and social interactions affect their behaviour.

Suggested Citation

  • Roukiatou Nikiema & Pam Zahonogo, 2017. "Taxpayer behaviour and institutions in Sub-Saharan Africa," BeFinD Working Papers 0119, University of Namur, Department of Economics.
    • Handle: RePEc:nam:befdwp:0119
    as

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    File URL: http://www.befind.be/publications/WPs/wp19
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    References listed on IDEAS

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    Cited by:

    1. Cyril Chimilila & Vincent Leyaro, 2022. "ICT, e-formalization and tax mobilisation efforts in sub-Saharan Africa," Discussion Papers 2022-03, University of Nottingham, CREDIT.

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    More about this item

    Keywords

    Taxpayer behaviour; Institutions; Generalized Structural Equation Modelling; SubSaharan Africa;
    All these keywords.

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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