Effect of productive capacities on tax revenue mobilization: Evidence from Sub‐Saharan African countries

This paper analyzes the effects of productive capacities on tax revenue mobilization in 37 Sub‐Saharan African countries. Using the Generalized Method of Moment (GMM) approach, the results show that productive capacities measured by the aggregate Productive Capacity Index (PCI) and its eight components, namely human and natural capital, energy, transport, Information and communication technologies, private sector, institutions and structural change positively and significantly affect total tax revenue mobilization. For example, an increase in one point of the PCI corresponds to an increase in total tax revenues by 0.0016 point. The effect of productive capacities also remains positive and significant on tax revenues, even when disaggregated into direct and indirect taxes. This paper contributes empirically to highlighting the importance of productive capacity in tax revenue mobilization. Hence, strengthening productive capacities is important to enhance tax revenue mobilization in Sub‐Saharan African countries. To meet the current challenges of mobilizing the fiscal resources needed to meet international agendas, Sub‐Saharan African countries must not only work to strengthen overall productive capacity, but also promote the quality of institutions, transport and energy, invest in human capital, create the conditions for real structural transformation, promote good digital governance and a more dynamic private sector.

• Publication year

  2023

• Venue

  Journal of Public Affairs

• Publication date

  2023-10-05

• Fields of study

  Not labeled

• Identifiers
  DOI 10.1002/pa.2895
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

• Effects of financial inclusion on tax revenue mobilization: Evidence from WAEMU countries

  2023cited by this paper
• Beneficial impact of tax reforms on tax revenue performances in Togo: Myth or reality?

  2023cited by this paper
• Les canaux de transmission des effets des TIC sur la mobilisation des recettes fiscales en Afrique

  2022cited by this paper
• Revenue Statistics in Africa 2022

  2022cited by this paper
• Understanding informality

  2021cited by this paper
• Human capital and economic growth in Nigeria

  2021cited by this paper
• Taxation et croissance économique en Afrique: la qualité des institutions importe‐t‐elle?

  2021cited by this paper
• Technology, poverty and income distribution nexus: The case of fertilizer adoption in Ethiopia

  2021cited by this paper
• Potential trade, welfare and revenue implications of the African Continental Free Trade Area (AfCFTA) for Ghana: An application of partial equilibrium model

  2020cited by this paper
• Institutional quality and economic performance in South Asia

  2020cited by this paper
• WP / 20 / 093 Promoting female economic inclusion for tax performance in Sub-Saharan Africa Forthcoming : Economic Analysis and Policy

  2020cited by this paper
• Assessing the potential effects of the AfCFTA on togolese economy: An application of partial equilibrium model

  2020cited by this paper
• The impact of capital inflows on economic growth of Ghana: Does quality of institutions matter?

  2020cited by this paper
• Les Profils de Coopération au Développement

  2019cited by this paper
• West African Economic and Monetary Union (WAEMU)

  2019cited by this paper
• The informal economy and its impact on tax revenues and economic growth. The case of Peru, Latin America and OECD countries (1995 – 2016)

  2019cited by this paper
• Structural change and economic growth in India

  2019cited by this paper
• Impact of bridging the Internet gap on public revenue mobilization

  2018cited by this paper
• Industrialization and Economic Growth in Sub-Saharan Africa: The Role of Human Capital in Structural Transformation

  2018cited by this paper
• The Informal Economy in Sub-Saharan Africa: Size and Determinants

  2017cited by this paper
• The Contribution of Agricultural Sector on Economic Growth of Nigeria

  2017cited by this paper
• Capital Allocation across Regions, Sectors and Firms: evidence from a commodity boom in Brazil

  2016cited by this paper
• The effects of ICT* on output per worker

  2016cited by this paper
• Globalization, Structural Change, and Productivity Growth, with an Update on Africa

  2014cited by this paper
• Resource Blessing, Revenue Curse? Domestic Revenue Effort in Resource-Rich Countries

  2014cited by this paper
• Taxation, non-tax revenue and democracy: New evidence using new cross-country data

  2014cited by this paper
• Internet Usage and the Shadow Economy: Evidence from Panel Data

  2013cited by this paper
• Determining Countries' Tax Effort

  2010cited by this paper
• Institutions As The Fundamental Cause Of Long-Run Growth

  2004cited by this paper
• How does insertion in global value chains affect upgrading in industrial clusters?

  2002cited by this paper
• Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations

  1991cited by this paper
• The Competitive Advantage of Nations.

  1990cited by this paper
• Macroeconomic Policy in a Two-Party System as a Repeated Game

  1987cited by this paper
• Monopoly and Resource Allocation

  1954cited by this paper
• A Contribution to the Theory of Taxation

  1927cited by this paper
• An Exploration in the Theory of Optimum Income Taxation an Exploration in the Theory of Optimum Income Taxation L Y 2

  year unknowncited by this paper

• No citing papers are available for this paper.