The objective of this paper is to analyze the contribution of illicit financial flows to the differences in tax rates in sub-Saharan Africa. Our sample contains 18 cooperative countries and 12 non-cooperative countries with respect to the Anti-Money Laundering / Countering the Financing of Terrorism. Using the Oaxaca-Blinder decomposition, we find that the difference in illicit financial flows explains the differences in tax burden.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.