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Fiscal Capacity and the Quality of Government in Sub-Saharan Africa

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  • Baskaran, Thushyanthan
  • Bigsten, Arne

Abstract

Historical evidence from the industrialized world suggests that the expansion of the modern state’s capacity to tax eventually led to more democratic and less corrupt governments. Using a dataset that covers 31 sub-Saharan African countries over the 1990–2005 period, we study whether the positive effect of fiscal capacity on the quality of government prevails in contemporaneous sub-Saharan Africa as well. The results provide consistent evidence that within sub-Saharan Africa, fiscal capacity decreases corruption and increases democracy.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 45 (2013)
Issue (Month): C ()
Pages: 92-107

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Handle: RePEc:eee:wdevel:v:45:y:2013:i:c:p:92-107

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: fiscal capacity; taxation; quality of government; sub-Saharan Africa;

References

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Cited by:
  1. Stephen Broadberry & Leigh Gardner, 2014. "African economic growth in a European mirror: a historical perspective," Economic History Working Papers 56493, London School of Economics and Political Science, Department of Economic History.

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