Tax mobilization in sub-Saharan Africa : Do illicit financial flows matter?
DOI:
https://doi.org/10.18559/rielf.2021.1.3Keywords:
tax burden, illicit financial flows, VAT gapAbstract
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.
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