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How does petty corruption affect tax morale in sub-Saharan Africa

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  • Björn Jahnke

Abstract

Revenues from taxation gain importance to finance economic development in sub-Saharan Africa. Extortion of bribes by public officials can provide one obstacle for tax compliance. This paper uses micro-level data from the Afrobarometer to analyse how petty corruption erodes tax morale. A mediation analysis shows that petty corruption directly reduces tax morale but also diminishes trust in the tax department and hence indirectly affects tax morale.

Suggested Citation

  • Björn Jahnke, 2017. "How does petty corruption affect tax morale in sub-Saharan Africa," WIDER Working Paper Series wp-2017-8, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2017-8
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    References listed on IDEAS

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    Cited by:

    1. Amadou Boly & Maty Konte & Abebe Shimeles, 2021. "Corruption Perception and Attitude Towards Taxation in Africa [To Pay or Not to Pay? Citizens’ Attitudes Toward Taxation in Kenya, Tanzania, Uganda, and South Africa]," Journal of African Economies, Centre for the Study of African Economies, vol. 30(Supplemen), pages 140-157.
    2. Julian Donaubauer & Peter Kannen & Frauke Steglich, 2022. "Foreign Direct Investment & Petty Corruption in Sub-Saharan Africa: An Empirical Analysis at the Local Level," Journal of Development Studies, Taylor & Francis Journals, vol. 58(1), pages 76-95, January.
    3. Boly, Amadou & Konte, Maty & Shimeles, Abebe, 2019. "Corruption and tax morale in Africa," MERIT Working Papers 2019-042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Salim Nuhu Ahmed & John M. Musah, 2018. "On asymmetric information and tax morale in developing countries," WIDER Working Paper Series 012, World Institute for Development Economic Research (UNU-WIDER).
    5. Adamu Jibir & Musa Abdu & Tasiu Muhammad, 2020. "Analysis of Tax Compliance in Sub-Saharan Africa: Evidence from Firm-Level Study," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 5(2), pages 119-142, December.
    6. Stephen Hall & Bernadette O’Hare, 2023. "A Model to Explain the Impact of Government Revenue on the Quality of Governance and the SDGs," Economies, MDPI, vol. 11(4), pages 1-16, March.
    7. Mohammed Aminu Yaru, 2022. "Budget transparency and internal revenue mobilisation at sub-national government level: evidence from Nigeria," Public Sector Economics, Institute of Public Finance, vol. 46(4), pages 505-531.
    8. Enrico Nichelatti & Heikki Hiilamo, 2024. "The Effect of Citizens’ Perception of Governance on Tax Compliance: A Cross-Country Analysis Study for 32 Sub-Saharan African Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(5), pages 1198-1226, October.
    9. Bernadette O'Hare & Steve G. Hall, 2022. "The Impact of Government Revenue on the Achievement of the Sustainable Development Goals and the Amplification Potential of Good Governance," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 14(2), pages 109-129, June.
    10. Abel Gwaindepi, 2021. "Domestic revenue mobilisation in developing countries: An exploratory analysis of sub‐Saharan Africa and Latin America," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(2), pages 396-421, March.
    11. Hermann D. Yohou, 2023. "Corruption, tax reform and fiscal space in emerging and developing economies," The World Economy, Wiley Blackwell, vol. 46(4), pages 1082-1118, April.
    12. Marina Nistotskaya & Michelle D'Arcy, 2021. "No taxation without property rights: Formalization of property rights on land and tax revenues from individuals in sub-Saharan Africa," WIDER Working Paper Series wp-2021-175, World Institute for Development Economic Research (UNU-WIDER).
    13. Nguyen, Ngoc Anh & Doan, Quang Hung & Tran-Nam, Binh, 2017. "Tax corruption and private sector development in Vietnam," MPRA Paper 84300, University Library of Munich, Germany.
    14. Víctor Mauricio Castañeda-Rodríguez & Gaetano Lisi, 2024. "Can public efficiency increase tax morale? Evidence from 18 Latin American countries," Economics of Governance, Springer, vol. 25(2), pages 209-231, June.
    15. Salim Nuhu Ahmed & John M. Musah, 2018. "On asymmetric information and tax morale in developing countries," WIDER Working Paper Series wp-2018-12, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    Keywords

    Corruption; Tax; Economic development;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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