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Violent conflict and taxation: Micro-level evidence from Burkina Faso

Author

Listed:
  • Mohammad H. Sepahvand
  • Sankar Placide Some
  • Annika Lindskog
  • Ann-Sofie Isaksson
  • Heather Congdon Fors

Abstract

This study analyses how violent conflict influences taxation in a poor, conflict-affected country, Burkina Faso. We use a unique, large, and representative panel dataset on tax collection of firms between 2015 and 2022 and geographically match these data with indicators of violent conflict at the municipal level. We find that firms pay a lower amount of tax in areas affected by violence. We also find that both turnover and firm survival decrease in areas as they become more insecure.

Suggested Citation

  • Mohammad H. Sepahvand & Sankar Placide Some & Annika Lindskog & Ann-Sofie Isaksson & Heather Congdon Fors, 2025. "Violent conflict and taxation: Micro-level evidence from Burkina Faso," WIDER Working Paper Series wp-2025-115, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-115
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    References listed on IDEAS

    as
    1. Marcio Cruz & Florian Moelders & Edgar Salgado Chavez & Ariane Tamara Volk, 2025. "Estimating the Number of Firms in Africa," Policy Research Working Paper Series 11032, The World Bank.
    2. Jonathan L Weigel, 2020. "The Participation Dividend of Taxation: How Citizens in Congo Engage More with the State When it Tries to Tax Them," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 135(4), pages 1849-1903.
    3. Weigel, Jonathan, 2020. "The participation dividend of taxation: how citizens in Congo engage more with the state when it tries to tax them," LSE Research Online Documents on Economics 104561, London School of Economics and Political Science, LSE Library.
    4. Sepahvand, Mohammad H. & Verwimp, Philip, 2023. "Fighting Covid-19 amidst civil conflict: Micro-level evidence from Burkina Faso," World Development, Elsevier, vol. 170(C).
    5. Sidiki Soubeiga & Jeremy Strauss, 2013. "Financial Sector Policy Note : Financing Small and Medium-Sized Businesses in Burkina Faso," World Bank Publications - Reports 18696, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

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