Tax effort and capacity in developing countries
Unravelling the impact of the informal economy
Bibliographic Data
| ID | 21541018 |
|---|---|
| Authors | Ezekiel Lengaram (0000-0001-5643-9221, University of the Witwatersrand, corresponding author), Miracle Ntuli (0000-0002-0689-5744, University of the Witwatersrand), Nyasha Mahonye (0000-0003-1585-4191, University of the Witwatersrand) |
| Year | 2025 |
| Volume | 42 |
| Issue | 4-5 |
| Pages | 580-604 |
| Publication date | 2025-09-03 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Development Southern Africa (JOURNAL) |
| Journal identifiers | ISSN: 0376-835X • E-ISSN: 1470-3637 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/0376835x.2025.2549280 |
| OpenAlex | W4414282676 |
| Language | EN |
| References cited | 91 |
This study focuses on estimating the tax effort in 25 selected African countries and its implications on economic development. It aims to assess the extent to which a country’s tax mobilisation is constrained by the informal structure of the economy. A unique aspect of this study is its tracking of tax effort and tax capacity at an aggregate level, while also relating tax revenue and revenue potential to the informal economy, using Stochastic Frontier technique and panel data spanning 2000–21. Comparing tax effort across countries offers vital insights into appropriate tax solutions for addressing budgetary imbalances. Key results show that informal economy and institutions have a negative effect on tax effort. The findings highlight the significance of improving governance related to the informal economy in enhancing revenue mobilisation. Furthermore, the study offers insights into fiscal behavioural patterns across African economies and recommends necessary reforms for fiscal responsibility
Developing country · Informal sector · Tax credit · Tax policy · Fiscal Policy and Economic Growth · Microfinance and Financial Inclusion · Taxation and Compliance Studies
Foreign Aid and Revenue
Frontier production functions, technical efficiency and panel data
Taxation and Development
A model for technical inefficiency effects in a stochastic frontier production function for panel data
General Diagnostic Tests for Cross Section Dependence in Panels
Institutions Rule
Formulation and estimation of stochastic frontier production function models
Does South Africa’s tax effort fall short of its tax capacity
Taxing Times
On Tax Efforts and Colonial Heritage in Africa
Globalisation and Developing Countries – a Shrinking Tax Base
Aid and Taxation in Ethiopia
Taxing the Informal Economy
Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroscedasticity
A Generalized Production Frontier Approach for Estimating Determinants of Inefficiency in U.S. Dairy Farms
Consistent Covariance Matrix Estimation with Spatially Dependent Panel Data
Aid and Government Fiscal Behavior
To Pay or Not to Pay? Citizens’ Attitudes Toward Taxation in Kenya, Tanzania, Uganda, and South Africa
Empirics of crosscountry tax revenue comparisons
Lurking in the shadows
Tax shares in developing economies A panel study
Culture differences and tax morale in the United States and in Europe
Why Do More Open Economies Have Bigger Governments
Aid, the Public Sector and the Market in Less Developed Countries
Trust, Corruption, and Tax Compliance in Fragile States
The worldwide governance indicators
A Theory of Tax Level Determinants for Developing Countries
Institutions
Will Underdeveloped Countries Learn to Tax
Informal Income Opportunities and Urban Employment in Ghana
| Highly cited | No |
|---|