Tax and income inequality: evidence from Sub-Saharan Africa

Theodora Aba Kwegyeba Brown; Godfred A. Bokpin; Emmanuel Sarpong-Kumankoma

doi:10.1108/IJDI-12-2022-0277

Tax and income inequality: evidence from Sub-Saharan Africa

Theodora Aba Kwegyeba Brown, Godfred A. Bokpin, Emmanuel Sarpong-Kumankoma

University of Ghana Business School

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

Purpose: This study aims to determine how taxes can be used to bridge income inequality gap in sub-Saharan Africa (SSA). Design/methodology/approach: A panel data set of 36 SSA countries was analysed using generalised method of moments. Findings: The results suggest that an increase in direct taxes relative to indirect taxes has a positive significant impact on income inequality. This is mostly due to the progressive nature of direct taxes as compared to indirect taxes. Originality/value: This research contributes to the scant literature on how specific tax components affect income inequality, especially in developing countries.

Original language	English
Pages (from-to)	345-360
Number of pages	16
Journal	International Journal of Development Issues
Volume	22
Issue number	3
DOIs	https://doi.org/10.1108/IJDI-12-2022-0277
Publication status	Published - 1 Nov 2023
Externally published	Yes

Keywords

Direct taxes
Income inequality
Indirect taxes
Tax structure

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1108/IJDI-12-2022-0277

Cite this

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title = "Tax and income inequality: evidence from Sub-Saharan Africa",

abstract = "Purpose: This study aims to determine how taxes can be used to bridge income inequality gap in sub-Saharan Africa (SSA). Design/methodology/approach: A panel data set of 36 SSA countries was analysed using generalised method of moments. Findings: The results suggest that an increase in direct taxes relative to indirect taxes has a positive significant impact on income inequality. This is mostly due to the progressive nature of direct taxes as compared to indirect taxes. Originality/value: This research contributes to the scant literature on how specific tax components affect income inequality, especially in developing countries.",

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AU - Brown, Theodora Aba Kwegyeba

AU - Bokpin, Godfred A.

AU - Sarpong-Kumankoma, Emmanuel

PY - 2023/11/1

Y1 - 2023/11/1

N2 - Purpose: This study aims to determine how taxes can be used to bridge income inequality gap in sub-Saharan Africa (SSA). Design/methodology/approach: A panel data set of 36 SSA countries was analysed using generalised method of moments. Findings: The results suggest that an increase in direct taxes relative to indirect taxes has a positive significant impact on income inequality. This is mostly due to the progressive nature of direct taxes as compared to indirect taxes. Originality/value: This research contributes to the scant literature on how specific tax components affect income inequality, especially in developing countries.

AB - Purpose: This study aims to determine how taxes can be used to bridge income inequality gap in sub-Saharan Africa (SSA). Design/methodology/approach: A panel data set of 36 SSA countries was analysed using generalised method of moments. Findings: The results suggest that an increase in direct taxes relative to indirect taxes has a positive significant impact on income inequality. This is mostly due to the progressive nature of direct taxes as compared to indirect taxes. Originality/value: This research contributes to the scant literature on how specific tax components affect income inequality, especially in developing countries.

KW - Direct taxes

KW - Income inequality

KW - Indirect taxes

KW - Tax structure

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EP - 360

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JF - International Journal of Development Issues

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ER -

Tax and income inequality: evidence from Sub-Saharan Africa

Abstract

Keywords

UN SDGs

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