Tax Innovations and Public Revenues in Sub-Saharan Africa |
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Authors: | Pelle Ahlerup Arne Bigsten |
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Institution: | Department of Economics, University of Gothenburg, Gothenburg, Sweden |
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Abstract: | AbstractWe study the effect of two tax innovations – value added taxes (VAT) and autonomous revenue authorities (ARA) – on tax revenues in sub-Saharan Africa. The dataset consists of 47 countries over 1980–2010. We find that VATs have no effect on total tax revenues, neither in the short- nor in the long-run. ARAs lead to higher tax revenues in the short- and medium-run, but the effect dissipates over time. The main conclusion is that tax innovations are not a panacea to overcome the revenue shortages in African countries, but they are helpful in the short- and medium-run. |
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