How does petty corruption affect tax morale in Sub-Saharan Africa?

Jahnke, B. and Weisser, R.A. ORCID: 0000-0002-1717-5697, 2018. How does petty corruption affect tax morale in Sub-Saharan Africa? European Journal of Political Economy. ISSN 0176-2680

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Abstract

Revenues from taxation gain in importance to finance economic development in Sub-Saharan Africa. One obstacle to enhancing the willingness to remit taxes can be the extortion of bribes by public officials. Using micro-level data from the Afrobarometer, we show that petty corruption erodes tax morale. The effect on tax morale is more severe in countries and regions where fewer people are affected by petty corruption and becomes insignificant if extortion of bribes is particularly prevalent. Differing levels of civic participation and potential access to tax funded services are also found to induce heterogeneous reactions to corruption experience. Applying a mediation analysis, we demonstrate that petty corruption not only has a direct effect on tax morale but also diminishes confidence in tax authorities and therefore affects tax morale indirectly. The harmful effects of corruption experience, however, operate mainly through a generally lowered inclination to uphold high levels of tax morale.

Item Type: Journal article
Publication Title: European Journal of Political Economy
Creators: Jahnke, B. and Weisser, R.A.
Publisher: Elsevier
Date: 19 September 2018
ISSN: 0176-2680
Identifiers:
NumberType
10.1016/j.ejpoleco.2018.09.003DOI
S0176268017303816Publisher Item Identifier
Rights: © 2018 Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Divisions: Schools > Nottingham Business School
Depositing User: Linda Sullivan
Date Added: 06 Sep 2019 09:36
Last Modified: 06 Sep 2019 09:36
URI: http://irep.ntu.ac.uk/id/eprint/37583

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