How could taxing illicit financial flows contribute to financing a universal child benefit in Ghana?

Enrico Nichelatti and Adnan Abdulaziz Shahir

No wp-2025-56, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Trade mis-invoicing represents a significant economic challenge in Ghana, with losses estimated at 3.03 per cent of gross domestic product in 2018. We examine the potential of a universal child benefit in Ghana through a counterfactual taxation of illicit financial flows. Using microsimulation, we model two budget-neutral designs: a flat per-child transfer and a quasi-universal schedule with higher amounts for larger households. Both options lower poverty and inequality, with stronger effects in rural areas and among larger households.

Keywords: Illicit financial flows; Universal basic income; Microsimulation modelling; Poverty; Inequality (search for similar items in EconPapers)
Date: 2025
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