Issue

Vol. 49 No. 1 (2024): Africa Development

2 - Analyse de la diversification des recettes fiscales en Afrique

des implications pour les politiques publiques
https://doi.org/10.57054/ad.v49i1.5614
Nimonka Bayale
Banque centrale des États de l’Afrique de l’Ouest (BCEAO), Dakar, Sénégal. Laboratoire de Recherche en Sciences Economiques et de Gestion (LaRSEG), Université de Kara, Togo
Jacques-Patrick Arnold Yao
Banque centrale des États de l’Afrique de l’Ouest (BCEAO), Dakar, Sénégal

Corresponding Author(s) : Nimonka Bayale

richard_bayale15@yahoo.fr

Africa Development, Vol. 49 No. 1 (2024): Africa Development

Abstract

Recent economic shocks, including the COVID-19 pandemic, illustrated the fragility of public policies built around concentrated revenue sources. The need for a more diversified tax structure is an important concern in developing countries. This article analyses the Tax Revenues Diversification (TRD) in 39 African countries over the period 2005-2019, distinguishing between resource-rich and resource-poor countries. An index for monitoring TRD is constructed. The results indicate that the average value of this index in Africa is 0.846, reflecting weak performance in terms of TRD. Moreover, factors that determine TRD are analyzed using the Bayesian Model Averaging (BMA) approach, the Generalized Moment Method (GMM) and the Least Squares Dummy Variable Corrected (LSDVC). The results show that economic development and diversification, promotion of the industrial sector, trade, education, and financial development and digitalization enhance TRD, whereas informal economy, natural resources, corruption, and political instability inhibit TRD. Thus, the government policies should focus on economic diversification, digitalization development, gradual taxation of the informal sector, and improving the quality of institutions to diversify and increase tax revenue mobilization.

Keywords

Tax revenue diversification Economic diversification Tax base Informal sector Panel data Africa
[1]
Bayale, N. and Arnold Yao, J.-P. 2024. 2 - Analyse de la diversification des recettes fiscales en Afrique: des implications pour les politiques publiques. Africa Development. 49, 1 (Jul. 2024). DOI:https://doi.org/10.57054/ad.v49i1.5614.
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