Economic Transformation and Tax Revenue Performance in SSA Countries
| dc.contributor.author | Fossong Derrick | |
| dc.contributor.author | Ndamsa Dickson Thomas | |
| dc.date.accessioned | 2026-01-29T09:44:06Z | |
| dc.date.available | 2026-01-29T09:44:06Z | |
| dc.date.issued | 2026 | |
| dc.description.abstract | Many studies have addressed the determinants of tax revenue performance, but knowledge on the causal impacts of economic transformation is nearly non-existent. This study used panel data from the World Bank Development Indicators and UNDP database over the period 1990–2021 to provide evidence on the effect of economic transformation on tax revenue performance. Our panel data estimation disentangled the causal effects of economic transformation in resource-rich and non-resource-rich countries. We employed the GMM to correct the problem of dynamic endogeneity and unobserved panel heterogeneity. We further utilized the fixed and random effects to assess the robustness of the GMM estimations. GMM results indicated that economic transformation has a significant positive effect on tax revenue performance in SSA. The fixed and random effects results reported a positive and significant effect of economic transformation on tax revenue performance in SSA, similar to the GMM results. We used two ICT-related transmission mechanisms: ICT adoption and ICT export/import. We found that ICT stock does mediate the effect of economic transformation on tax revenue performance. Like in resource-rich countries, economic transformation had a positive impact on tax revenue performance in non-resource-rich countries. Thus, this study recommends that SSA countries, in an effort to increase tax revenue performance, should promote economic transformation through the DEPTH (diversification, export competitiveness, productivity, technological upgrading, and human well-being). Measures to enhance ICT adoption the for e-tax system are vital in strengthening the relationship between economic transformation and tax revenue performance in SSA. | |
| dc.identifier.uri | https://publication.aercafricalibrary.org/handle/123456789/4051 | |
| dc.publisher | AERC | |
| dc.title | Economic Transformation and Tax Revenue Performance in SSA Countries |