Impact of taxation on growth in Subsaharan Africa: new evidence based on a new data set

Andre Gbato

MPRA Paper from University Library of Munich, Germany

Abstract: In this study, we empirically test the impact of taxation on the long-term growth of a sample of 32 countries in sub-Saharan Africa. The results indicate a zero effect of taxation on long-term growth. Moreover, the results suggest a significant negative effect of indirect taxes and taxes on individuals in short term. Consequently, the use of taxation as an instrument of intervention is not appropriate in the region. The countries of the region could therefore increase their growth, if the design of fiscal policy rests solely on logic of fiscal neutrality.

Keywords: Growth; Taxation; Heterogeneous panels; Cross-sectional dependence (search for similar items in EconPapers)
JEL-codes: C13 E62 H30 O40 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-afr, nep-mac and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:80903

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