Taxes, institutions, and illicit financial flows in Africa

Isaac Bentum-Ennin, Samuel Mensah and Evans Kulu

Global Business and Economics Review, 2024, vol. 31, issue 1, 118-135

Abstract: This study investigates the effects of taxes and quality institutions on illicit financial flows (IFFs) in Africa. An annual panel data from 30 countries for the period, 2008 to 2017, was employed. The estimated general method of moments models revealed that increases in taxes on international trade provide an incentive for IFFs but this effect is ameliorated or rendered insignificant in the presence of quality institutions, especially, control of corruption, voice and accountability, rule of law, and regulatory quality. There is a need for governments in African countries to strengthen these institutions while minimising international trade taxes in the quest to reduce IFFs.

Keywords: general method of moments; illicit financial flow; IFF; institutional quality; tax; Africa. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=139318 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:31:y:2024:i:1:p:118-135

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().