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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 governance

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  • Enrico Nichelatti
  • Heikki Hiilamo

Abstract

The COVID-19 pandemic showed that many developing countries could not respond effectively to crises due to their limited capacity to diversify their social protection responses. Social protection systems depend mainly on government tax revenue capacity. Raising domestic revenue still represents a priority for most sub-Saharan African countries, which 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 sub-Saharan Africa.

Suggested Citation

  • 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).
    • Handle: RePEc:unu:wpaper:wp-2022-144
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    References listed on IDEAS

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    Keywords

    Tax compliance; Governance; Sub-Saharan Africa; Tax revenue; Regression analysis; Mediation analysis;
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