| dc.description.abstract | Based on historical research, focusing mainly on early-modern Europe, it is assumed that taxation
functions as a booster of state capacity and Quality of Government (QoG). The presence of this
relationship for modern-day developing states is however heavily contested. This paper analyzes the
relationship in a sub-Saharan context. By using new taxation data, which disaggregates resource
income from other types of taxation (drawn from African Economic Outlook [2010]) we can with
greater specificity dissect the different effects of different types of taxation. Through a multivariate
regression analysis the paper shows that taxation, and in particular direct and indirect taxation, as a
share of GDP seems to be associated with higher levels of QoG, although this relationship is at
times weak. Furthermore, the relative dependence on direct and, to an extent indirect, taxation,
measured as its share of the total tax base is shown to be more consistently coupled with better
QoG. Thus, the paper concludes, more research on the importance of both size and shape of the
tax base is warranted and needed. | sv |
