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Fiscal capacity and government accountability in sub-Saharan Africa

Author

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  • Baskaran, Thushyanthan

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Bigsten, Arne

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

Historical evidence from the developed world suggests that the expansion of the mod- ern states’ fiscal capacity (i. e. its ability to tax citizens) eventually led to more democratic and less corrupt governments. Since sub-Saharan African countries are currently in a pro- cess of state building, we study whether a positive effect of fiscal capacity on government accountability prevails in contemporaneous sub-Saharan Africa, too. We conduct the em- pirical analysis with data covering 23 African countries over the 1960-2008 period. The results suggest that fiscal capacity increases government accountability in sub-Saharan Africa.

Suggested Citation

  • Baskaran, Thushyanthan & Bigsten, Arne, 2011. "Fiscal capacity and government accountability in sub-Saharan Africa," Working Papers in Economics 506, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0506
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    File URL: http://hdl.handle.net/2077/25676
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    References listed on IDEAS

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    Cited by:

    1. Libman, Alexander & Schultz, André & Graeber, Thomas, 2011. "Tax return as a political statement," Frankfurt School - Working Paper Series 169, Frankfurt School of Finance and Management.
    2. Baskaran, Thushyanthan, 2014. "Taxation and Democratization," World Development, Elsevier, vol. 56(C), pages 287-301.

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    More about this item

    Keywords

    Fiscal capacity; taxation; government accountability; democracy;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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