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Taxation and Indigenous Institutions in Sub-Saharan Africa

Author

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  • Samantha Torrance
  • Oliver Morrissey
Abstract
This paper contributes to the literature on tax performance in sub-Saharan African countries. A standard model of the determinants of tax revenue is augmented to include measures of indigenous pre-independence institutional structure constructed from anthropological data on the characteristics of ethnic group organisation. We posit that if the three largest ethnic groups characterised by a clan-based organisational structure are a sufficiently large share of the population they are more likely to be able to reach a political consensus that allows a higher revenue to GDP ratio. We find that indigenous institutions have an effect on tax performance in SSA that diminishes over time (as the economy grows and new institutions emerge).

Suggested Citation

  • Samantha Torrance & Oliver Morrissey, 2014. "Taxation and Indigenous Institutions in Sub-Saharan Africa," Discussion Papers 14/04, University of Nottingham, CREDIT.
    • Handle: RePEc:not:notcre:14/04
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    Cited by:

    1. Nosakhare Arodoye & Dickson Oriakhi & Milton Iyoha, 2020. "Tax Revenue Performance In Sub-Saharan Africa Countries: Are There Empirical Evidence For Macroeconomic Variables?," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 5(special), pages 69-81, June.
    2. Ali, Merima & Fjeldstad, Odd-Helge, 2023. "Pre-colonial centralization and tax compliance norms in contemporary Uganda," Journal of Institutional Economics, Cambridge University Press, vol. 19(3), pages 379-400, June.

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    Keywords

    Tax Revenue; Institutions; sub-Saharan Africa;
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