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Taxation,foreign aid and political governance in Africa

Simplice Asongu () and Nicholas Odhiambo ()

No 25396, Working Papers from University of South Africa, Department of Economics

Abstract: This study examines the hypothesis that foreign aid dilutes the positive role of taxation on political governance. The empirical evidence is based on the Generalised Method of Moments and 53 African countries for the period 1996-2010. For more policy options, the dataset is disaggregated into fundamental characteristics of African development based on income levels, legal origins, natural resources and landlockedness. While the hypothesis is invalid in baseline Africa, low income and English common law countries of the continent, the research cannot conclude on its validity for other fundamental characteristics of development. Policy implications, caveats and directions for future research are discussed.

Keywords: Foreign Aid; Political Economy; Development; Africa (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-pol
Date: 2019-04
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Working Paper: Taxation, foreign aid and political governance in Africa (2019) Downloads
Working Paper: Taxation, foreign aid and political governance in Africa (2019) Downloads
Working Paper: Taxation, foreign aid and political governance in Africa (2019) Downloads
Working Paper: Taxation, foreign aid and political governance in Africa (2019) Downloads
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