La mobilisation des ressources fiscales en Afrique subsaharienne: quel rôle des flux financiers illicites?

Abstract

The objective of this paper is to analyze the contribution of illicit financial flows to the differences in tax rates in sub-Saharan Africa. Our sample contains 18 cooperative countries and 12 non-cooperative countries with respect to the Anti-Money Laundering / Countering the Financing of Terrorism. Using the Oaxaca-Blinder decomposition, we find that the difference in illicit financial flows explains the differences in tax burden.

Monetary Policy and Governance, Commodity Price Volatility and Tax Revenues in Sub-Saharan Africa

“…This result highlights the divergence in the level of tax effort observed within the countries. To explain this observed difference, Thiao and Ouonogo (2021) adopted the Oaxaca–Blinder decomposition and showed that the difference in terms of illicit financial flows explains the differences in tax effort observed within a sample of 30 SSA countries.…”

“…The mobilization of domestic resources has been one of the major concerns of African countries (Thiao and Ouonogo 2021). Its importance in financing development gained the renewed interest of both policymakers and scholars.…”

“…The first one aims to investigate the determinants of tax potential. These authors argue that the heterogeneity in the level of tax revenue is explained by countries’ natural resource endowments tax evasion, and the level of the shadow economy (Thiao and Ouonogo 2021; Zídková 2014). The second and most recent strand of the literature focuses on the fiscal effects of CPV and found heterogeneous effects, depending on countries’ characteristics (Da and Diarra 2022; García-Albán, González-Astudillo and Vera-Avellán 2021; Majumder, Raghavan and Vespignani 2022).…”

The Impact of Islamist Terrorism on Africa's Informal Economy: Kenya, Compared with Ghana and Senegal

“…The increase in public spending tends also to reinforce the effects of terrorism on public debt by the necessity to prevent or counteract terrorism with considerable additional public spending e. g. on security and poverty alleviation (Abidn& Sekrafi, 2020). Therefore, the variances in illicit financial flows largely explain the differences in tax burden (Thiao & Ouonogo, 2021). Both poverty and terrorism have a long-run negative impact the macroeconomic performance (Ilyas & Mehmood & Aslam, 2017).…”