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Taxation, foreign aid and political governance: figures to the facts of a celebrated literature

Listed author(s):
  • Asongu, Simplice

This paper puts figures to the facts of Eubank (2012), a recently celebrated paper in the Journal of Development Studies. We investigate the underpinning Somaliland-based hypothesis that foreign aid dilutes the positive role of taxation on political governance. The assessment is based on 53 African countries for the period 1996-2010. For more policy options, the dataset is disaggregated into fundamental characteristics of African development based on income-levels, legal origins, natural resources and landlockeness. While the Eubank hypothesis is invalid in baseline Africa, low-income and English common law countries of the continent, we cannot conclude on its validity for other fundamental characteristics of development. Policy implications, caveats and future directions are discussed.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 63792.

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Date of creation: 13 Aug 2014
Handle: RePEc:pra:mprapa:63792
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