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Fiscal capacity and government accountability in sub-Saharan Africa

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Author Info

  • 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.

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File URL: http://hdl.handle.net/2077/25676
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 506.

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Length: 34 pages
Date of creation: 15 Jun 2011
Date of revision:
Handle: RePEc:hhs:gunwpe:0506

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research

Keywords: Fiscal capacity; taxation; government accountability; democracy;

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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.

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