Resource mobilisation, institution and inclusive growth in Africa: Evidence from spatial analysis

Adeosun, Opeoluwa Adeniyi; Ayodele, Olumide S.; Tabash, Mosab I.; Anagreh, Suhaib

doi:10.1111/saje.12332

Cited by 3 publications

(2 citation statements)

References 21 publications

(45 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Adeosun et al (2023) examine the relationship between tax resource mobilization (TRM) institutions and inclusive growth in Africa, taking into account spatial effects. The study uses panel data from 48 African countries for the period 1995–2015.…”

Section: Literature Reviewmentioning

confidence: 99%

“…FDI, globalization and trade openness fostered inclusive growth, while technological changes and financial deepening had no discernible effect on inclusive growth. Adeosun et al (2023) examine the relationship between tax resource mobilization (TRM) institutions and inclusive growth in Africa, taking into account spatial effects. The study uses panel data from 48 African countries for the period 1995-2015.…”

Section: Evidence From Africamentioning

confidence: 99%

See 1 more Smart Citation

Fiscal space, governance quality and inclusive growth: evidence from Africa

Katuka,

Mudzingiri,

Ozili

2023

JFEP

View full text Add to dashboard Cite

Purpose This study aims to examine the impact of fiscal space and governance quality on inclusive growth in African countries. Design/methodology/approach In total, 28 African countries were analyzed from 2000 to 2020 using the generalized method of moment regression method. An inclusive growth index was developed using the principal component analysis (PCA) method. The PCA-derived index incorporates factors such as poverty, income inequality, economic participation and per capita income. Findings The main findings suggest that fiscal space availability (de facto fiscal space and fiscal balance) promotes inclusive growth. The study also showed that lagged inclusive growth, digitalization and governance indicators positively influence inclusive growth. The study concludes that fiscal space availability fosters inclusive growth, but this effect is mediated by governance quality in Africa. Originality/value Several studies examined the role of fiscal policy on inclusive growth. However, it is crucial to assess the fiscal space, that is, the financial capacity of the government to implement its fiscal policy without harming its financial stability. This paper, therefore, contributes to the existing literature by using de facto fiscal space indicator to comprehend fiscal dynamics contributing to inclusive growth. In addition, the paper uniquely constructs an inclusive growth index by including poverty severity, which considers both the incidence and depth of poverty and inequality in society.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Evidence From Africamentioning

confidence: 99%

Fiscal space, governance quality and inclusive growth: evidence from Africa

Katuka,

Mudzingiri,

Ozili

2023

JFEP

View full text Add to dashboard Cite

show abstract

FDI, institutional quality and gender employment in Sub-Saharan Africa

Afolabi,

Raifu

2024

Studies in Economics and Econometrics

View full text Add to dashboard Cite

Examining the relationship between inclusive growth and tax revenue mobilization: additional evidence from sub-Saharan African countries

Adeosun,

Olomola,

Adedokun

et al. 2024

AJEMS

View full text Add to dashboard Cite

PurposeThe study investigates the influence of inclusive growth on tax revenue. It validates the fiscal exchange and resource bargaining theories, which suggest that tax compliance improves when citizens perceive that their tax contributions lead to enhanced welfare and that the government negotiates with people to provide public goods and services in exchange for taxes received.Design/methodology/approachThe paper employs inclusive growth measures, including an integrated GDP and equity growth measure and alternative proxies based on GDP per person employed and Asian Development Bank (ADB) inclusive growth indicators. Using 39 sub-Saharan African countries as a sample, our analysis captures spatial interactions across these contiguous countries using the Fixed-Effect model with the Driscoll and Kraay non-parametric consistent covariance matrix and the spatial Durbin Arellano–Bond linear dynamic panel generalized method of moment (Spatial GMM) approach with an interaction weight matrix to capture interactions between countries in the region.FindingsThe paper shows that inclusive growth positively influences tax revenue in the region. This validates the fiscal exchange and resource bargaining hypotheses, demonstrating that tax compliance is positively influenced by public goods provision and the government’s ability to emphasize the necessity of taxes for service provision. It indicates that citizens are more willing to pay taxes when the government effectively promotes welfare. We find a significant positive spatial spillover effect, suggesting that inclusive growth not only boosts tax revenue within a specific country but also extends its benefits to neighboring countries, aligning with the spillover theory.Practical implicationsThe study posits that the government implements policies that guarantee effectiveness and accountability in public welfare delivery as well as sufficient tax bases and tax revenue. An inclusive growth policy that engenders GDP growth, employment and equity growth should be implemented since the rate of tax compliance of the citizens improves for every welfare provided by the government.Originality/valueThis study tests the validity of the fiscal exchange and resource bargaining theories in Sub-Saharan Africa. Accommodating spatial dependence and cross-border effects, the study sheds light on how inclusive growth impacts tax revenue across contiguous countries in the region. As such, the region should prioritize regional integration, fostering economic ties and harmonizing policies through knowledge sharing and cross-border investment.

show abstract

Resource mobilisation, institution and inclusive growth in Africa: Evidence from spatial analysis

Cited by 3 publications

References 21 publications

Fiscal space, governance quality and inclusive growth: evidence from Africa

Fiscal space, governance quality and inclusive growth: evidence from Africa

FDI, institutional quality and gender employment in Sub-Saharan Africa

Examining the relationship between inclusive growth and tax revenue mobilization: additional evidence from sub-Saharan African countries

Contact Info

Product

Resources

About