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

  • Baskaran, Thushyanthan
  • Bigsten, Arne

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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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