Cogent Social Sciences (Dec 2024)

Revisiting determinants of tax revenue mobilization in Sub-Saharan African countries: does e-government matter?

  • Getahun Tolossa,
  • Wondemhunegn Ezezew Melese

DOI
https://doi.org/10.1080/23311886.2024.2399937
Journal volume & issue
Vol. 10, no. 1

Abstract

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The mobilization of domestic revenue has become a crucial priority for developing nations in their pursuit of various development objectives such fiscal financing, funding economic and social development projects, ensuring state legitimacy, national security, promoting state accountability, as well as facilitating effective state building. In light of this, this study aims to revisit the factors influencing tax revenue mobilization by introducing a new explanatory variable, namely the electronic government development index. The study utilizes panel data from 30 Sub-Saharan African countries spanning the period from 2003 to 2022. By employing the correlated panel corrected standard error (PCSE) model, the study underscores the significance of the electronic government development index as a determinant of tax revenue efforts, in addition to the traditional macroeconomic factors. Based on the study’s findings, it is crucial for countries to prioritize digital transformation strategies that aim to integrate digital technology across various sectors, thereby reshaping both enterprises and government systems that enhance revenue mobilization. This study contributes to the ongoing discourse on tax revenue mobilization in African countries by examining the theoretical implications of the government’s shift toward electronic platforms for service delivery.

Keywords