Governance Transparency of Tax Revenue Performance in West Africa
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Date
2022
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Publisher
Sumy State University, Ukraine
Abstract
This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of
governance and taxation revenue performance. The main purpose of the research is to examine the influence
of management on tax revenue performance in West African countries. Specifically, the study aimed to
investigate the impact of regulatory quality (political stability) and (voice and accountability) on tax revenue
performance in West African countries; and to assess the effect of governance efficiency (the rule of law and
control of corruption) on the performance of tax generation of West African countries. Secondary data were
sourced from Governance indicators which cover 2005 to 2017. Regression analysis was employed to test
the research hypotheses: regulatory quality does not significantly influence tax revenue performance in West
African countries; and government efficiency does significantly affect tax revenue in West African countries.
Sixteen West African countries were purposively chosen because of governance issues such as political
instability and government ineffectiveness. The paper presents the results of an empirical analysis, which
showed that regulatory quality, political stability and absence of violence, and voice and accountability have
insignificant impacts (p-value > 5% level of significance) on tax revenue performance. Moreover,
government effectiveness, the rule of law and control of corruption have positive and significant impacts (pvalue < 5% level of significance) on tax revenue performance in West African countries. The study
concludes that governance affects tax revenue performance in West African Countries; thus, the study
recommends, among others that government should come up with realistic policies that will increase public and civil service quality
Description
Keywords
Governance, Performance, Taxation, West Africa