IDEAS home Printed from https://ideas.repec.org/a/pal/eurjdr/v36y2024i5d10.1057_s41287-024-00631-2.html
   My bibliography  Save this article

The Effect of Citizens’ Perception of Governance on Tax Compliance: A Cross-Country Analysis Study for 32 Sub-Saharan African Countries

Author

Listed:
  • Enrico Nichelatti

    (University of Helsinki
    United Nations University – World Institute for Development and Economics Research)

  • Heikki Hiilamo

    (University of Helsinki)

Abstract

Raising domestic revenue still represents a priority for most Sub-Saharan African countries that 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 SSA. We employ a logistic regression model by applying five levels of specifications and using round 7 of the Afrobarometer, which contains information on Africans’ views on democracy, governance, economic reform, civil society, and quality of life for 32 countries. The main results suggest that perceptions of governance and attitudes towards tax compliance are positively associated, and their impact differs by country. 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. Our findings suggest that a negative perception of governance may influence the trust in institutions and affect willingness to pay taxes.

Suggested Citation

  • Enrico Nichelatti & Heikki Hiilamo, 2024. "The Effect of Citizens’ Perception of Governance on Tax Compliance: A Cross-Country Analysis Study for 32 Sub-Saharan African Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(5), pages 1198-1226, October.
    • Handle: RePEc:pal:eurjdr:v:36:y:2024:i:5:d:10.1057_s41287-024-00631-2
    DOI: 10.1057/s41287-024-00631-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41287-024-00631-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41287-024-00631-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Braithwaite, Valerie & Ahmed, Eliza, 2005. "A threat to tax morale: The case of Australian higher education policy," Journal of Economic Psychology, Elsevier, vol. 26(4), pages 523-540, August.
    2. Donna Bobek & Robin Roberts & John Sweeney, 2007. "The Social Norms of Tax Compliance: Evidence from Australia, Singapore, and the United States," Journal of Business Ethics, Springer, vol. 74(1), pages 49-64, August.
    3. Max Everest-Phillips & Richard Sandall, 2009. "Linking Business Tax Reform with Governance : How to Measure Success," World Bank Publications - Reports 10572, The World Bank Group.
    4. repec:idq:ictduk:13357 is not listed on IDEAS
    5. Bratton, Michael, 2012. "Citizen Perceptions of Local Government Responsiveness in Sub-Saharan Africa," World Development, Elsevier, vol. 40(3), pages 516-527.
    6. Timothy Besley & Torsten Persson, 2014. "Why Do Developing Countries Tax So Little?," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 99-120, Fall.
    7. Eliza Ahmed & Valerie Braithwaite, 2004. "When Tax Collectors Become Collectors for Child Support and Student Loans: Jeopardizing the Revenue Base?," Kyklos, Wiley Blackwell, vol. 57(3), pages 303-326, August.
    8. repec:idq:ictduk:13710 is not listed on IDEAS
    9. Benno Torgler & Markus Schaffner & Alison Macintyre, 2007. "Tax Compliance, Tax Morale and Governance Quality," CREMA Working Paper Series 2007-17, Center for Research in Economics, Management and the Arts (CREMA).
    10. Bahl, Roy W. & Bird, Richard M., 2008. "Tax Policy in Developing Countries: Looking Back—and Forward," National Tax Journal, National Tax Association;National Tax Journal, vol. 61(2), pages 279-301, June.
    11. Shahra Razavi & Christina Behrendt & Mira Bierbaum & Ian Orton & Lou Tessier, 2020. "Reinvigorating the social contract and strengthening social cohesion: Social protection responses to COVID‐19," International Social Security Review, John Wiley & Sons, vol. 73(3), pages 55-80, July.
    12. Batrancea, Larissa & Nichita, Anca & Olsen, Jerome & Kogler, Christoph & Kirchler, Erich & Hoelzl, Erik & Weiss, Avi & Torgler, Benno & Fooken, Jonas & Fuller, Joanne & Schaffner, Markus & Banuri, She, 2019. "Trust and power as determinants of tax compliance across 44 nations," Journal of Economic Psychology, Elsevier, vol. 74(C).
    13. repec:idq:ictduk:11205 is not listed on IDEAS
    14. Favourate Y. Sebele-Mpofu, 2020. "Governance quality and tax morale and compliance in Zimbabwe’s informal sector," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1794662-179, January.
    15. repec:idq:ictduk:17602 is not listed on IDEAS
    16. Mohammed Abdullahi Umar & Chek Derashid & Idawati Ibrahim, 2017. "What Is Wrong With the Fiscal Social Contract of Taxation in Developing Countries? A Dialogue With Self-Employed Business Owners in Nigeria," SAGE Open, , vol. 7(4), pages 21582440177, December.
    17. Justesen, Mogens K. & Bjørnskov, Christian, 2014. "Exploiting the Poor: Bureaucratic Corruption and Poverty in Africa," World Development, Elsevier, vol. 58(C), pages 106-115.
    18. Cummings, Ronald G. & Martinez-Vazquez, Jorge & McKee, Michael & Torgler, Benno, 2009. "Tax morale affects tax compliance: Evidence from surveys and an artefactual field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 70(3), pages 447-457, June.
    19. Jahnke, Björn & Weisser, Reinhard A., 2019. "How does petty corruption affect tax morale in Sub-Saharan Africa?," European Journal of Political Economy, Elsevier, vol. 60(C).
    20. Ashby, Julie S. & Webley, Paul & Haslam, Alexander S., 2009. "The role of occupational taxpaying cultures in taxpaying behaviour and attitudes," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 216-227, April.
    21. Hofmann, Eva & Voracek, Martin & Bock, Christine & Kirchler, Erich, 2017. "Tax compliance across sociodemographic categories: Meta-analyses of survey studies in 111 countries," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 63-71.
    22. Kastlunger, Barbara & Dressler, Stefan G. & Kirchler, Erich & Mittone, Luigi & Voracek, Martin, 2010. "Sex differences in tax compliance: Differentiating between demographic sex, gender-role orientation, and prenatal masculinization (2D:4D)," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 542-552, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lewczuk, Anna & Metelska-Szaniawska, Katarzyna, 2025. "Economic effects of (non-)compliance with constitutions," Journal of Comparative Economics, Elsevier, vol. 53(1), pages 227-242.
    2. Hagen Kruse & Franziska Lieselotte Ohnsorge & Gabriel Zenon Tourek & Zoe Leiyu Xie, 2025. "Bridging the Gap : Revenue Mobilization in South Asia," Policy Research Working Paper Series 11104, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paleka Hana & Karanović Goran & Štambuk Ana, 2023. "The Direct and Moderating Effect of Sociodemographic Variables on Tax Compliance Behaviour," South East European Journal of Economics and Business, Sciendo, vol. 18(2), pages 34-48, December.
    2. Enrico Nichelatti & Heikki Hiilamo, 2022. "A fiscal approach to the social contract in sub-Saharan African countries: Looking for opportunities to strengthen trust in government and tax compliance by analysing citizens' perception of governanc," WIDER Working Paper Series wp-2022-144, World Institute for Development Economic Research (UNU-WIDER).
    3. Hofmann, Eva & Voracek, Martin & Bock, Christine & Kirchler, Erich, 2017. "Tax compliance across sociodemographic categories: Meta-analyses of survey studies in 111 countries," Journal of Economic Psychology, Elsevier, vol. 62(C), pages 63-71.
    4. Lange Thomas & Melsom Anne May, 2024. "Tax Compliance among Managers: Evidence from Randomized Audits," Nordic Tax Journal, Sciendo, vol. 2024(1), pages 1-29.
    5. Deparade, Darius & Jarmolinski, Lennart & Mohr, Peter, 2025. "Behavioral interventions, tax compliance and consequences on inequality," Discussion Papers 2025/4, Free University Berlin, School of Business & Economics.
    6. Nathalie Etchart-vincent & Marisa Ratto & Emmanuelle Taugourdeau, 2024. "Why should I comply with taxes if others don't?: an experimental study testing informational effects," Working Papers hal-04635966, HAL.
    7. Vincent, Rose Camille, 2023. "Vertical taxing rights and tax compliance norms," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 443-467.
    8. Fatas, Enrique & Nosenzo, Daniele & Sefton, Martin & Zizzo, Daniel John, 2021. "A self-funding reward mechanism for tax compliance," Journal of Economic Psychology, Elsevier, vol. 86(C).
    9. Batrancea, Larissa M. & Kudła, Janusz & Błaszczak, Barbara & Kopyt, Mateusz, 2022. "Differences in tax evasion attitudes between students and entrepreneurs under the slippery slope framework," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 464-482.
    10. Stefura Gabriela, 2012. "The Role of Opportunity, Taxpayers’ Perceptions and Demographic Differences in Tax Compliance Analysis," Annals - Economic and Administrative Series -, Faculty of Business and Administration, University of Bucharest, vol. 6(1), pages 163-177, December.
    11. Engel, Christoph & Zamir, Eyal, 2024. "Is transparency a blessing or a curse? An experimental horse race between accountability and extortionary corruption," International Review of Law and Economics, Elsevier, vol. 78(C).
    12. Benno Torgler, 2021. "Behavioral Taxation: Opportunities and Challenges," CREMA Working Paper Series 2021-25, Center for Research in Economics, Management and the Arts (CREMA).
    13. James Alm & Matthias Kasper, 2020. "Laboratory Experiments," Working Papers 2008, Tulane University, Department of Economics.
    14. MirHadi Hosseini Kondelaji & Majid Sameti & Hadi Amiri & Rozita Moayedfar, 2016. "Analyzing Determinants of Tax Morale Based on Social Psychology Theory: Case Study of Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(4), pages 579-595, Autumn.
    15. James Alm & Matthias Kasper & Erich Kirchler, 2022. "Can ethics change? Enforcement and its effects on taxpayer compliance," Working Papers 2209, Tulane University, Department of Economics.
    16. Lidija Hauptman & Berislav Zmuk & Ivana Pavic, 2024. "Taxpayers' attitudes toward tax compliance in the Slovenian tax system: differences according to gender, income level and size of settlement," Public Sector Economics, Institute of Public Finance, vol. 48(2), pages 177-201.
    17. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    18. Nordblom, Katarina, 2017. "Tax Morale and Policy Intervention," Working Papers in Economics 711, University of Gothenburg, Department of Economics.
    19. Indah Masri & Tryas Chasbiandani & Diandra Kamila Rasyid & Nur’Aini Nur’Aini, 2024. "Reciprocal Relationship between Taxpayer’s Compliance and Governance Quality," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 131-137, July.
    20. Milyausha R. Pinskaya & Anna V. Tikhonova & Anna E. Gerasimova, 2025. "Implementation of a Laboratory Experiment in a Student Environment to Study the Behavior of Taxpayers in Russia," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 24(1), pages 91-124.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:eurjdr:v:36:y:2024:i:5:d:10.1057_s41287-024-00631-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.