Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273929 
Year of Publication: 
2022
Series/Report no.: 
WIDER Working Paper No. 2022/144
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
The COVID-19 pandemic showed that many developing countries could not respond effectively to crises due to their limited capacity to diversify their social protection responses. Social protection systems depend mainly on government tax revenue capacity. Raising domestic revenue still represents a priority for most sub-Saharan African countries, which continue to face high tax non-compliance. This research investigates whether there is a link between citizens' perceptions of governance and individual tax compliance in sub-Saharan Africa. We employ a logistic regression model and use Round 7 of the Afrobarometer, whichcontains information on Africans' views on democracy, governance, economic reform, civil society, and quality of life for 32 countries. Furthermore, in addition to a regression analysis, the study proposes a binary mediation analysis to investigate the direct and indirect effects of governance perception on individual tax compliance, with trust in institutions serving as a mediator. The main results suggest that perceptions of governance and attitudes towards tax compliance are positively associated, and their impact differs by country.
Subjects: 
tax compliance
perception of governance
sub-Saharan Africa
tax revenue
regression analysis
binary mediation analysis
JEL: 
C21
C25
H26
Z18
Persistent Identifier of the first edition: 
ISBN: 
978-92-9267-277-5
Document Type: 
Working Paper

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