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Impact of Taxation on Growth in Sub-Saharan Africa: New Evidence Based on a New Data Set

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  • Andre Gbato

    () (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this study, we empirically test impact of taxation on long-run growth of a sample of 32 countries in sub-Saharan Africa. The results indicate a zero effect of taxation on long-run growth. Moreover, the results suggest a significant negative effect of indirect taxes and taxes on individuals in short term. Consequently, the use of taxation as an instrument of intervention is not appropriate in the region. The countries of the region could therefore increase their growth, if the design of fiscal policy rests solely on logic of fiscal neutrality.

Suggested Citation

  • Andre Gbato, 2017. "Impact of Taxation on Growth in Sub-Saharan Africa: New Evidence Based on a New Data Set," Post-Print hal-01673738, HAL.
  • Handle: RePEc:hal:journl:hal-01673738
    DOI: 10.5539/ijef.v9n11p173
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01673738
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    Keywords

    cross-sectional dependence; growth; taxation; heterogeneous panels;

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