Date of Award
Fall 12-18-2013
Degree Type
Thesis
Degree Name
Master of Arts (MA)
Department
Political Science
First Advisor
Dr. Charles Hankla
Second Advisor
Dr. Carrie Manning
Third Advisor
Dr. Ryan Carlin
Fourth Advisor
Dr. Amy Steigerwalt
Abstract
When it comes to improving tax revenues in developing countries, we do not have a clear understanding of whether it is more important to have democracy or state effectiveness. Two theories have prevailed in the literature; one is to focus on building strong states that can have financial autonomy, the other is to promote democracy with the assumption that democracy brings about economic growth. Yet, for over four decades, developing countries’ tax to GDP ratio is still desperately low. On average, developing countries ‘tax to the GDP ratio is less that half that of the OCDE countries. This article contends that greater taxation outcomes result from the synergistic combination between democracy and state effectiveness. Empirical evidence from a time-series-cross-sectional dataset covering up to 120 countries during the 2003-2012 time period supports the conclusion that the two attributes working together increase tax revenue by 16% because they force political leaders to focus on citizens by improving their political participation (democracy) and by meeting voters’ basic needs (performance).
DOI
https://doi.org/10.57709/4905465
Recommended Citation
Onivogui, Jean Francois Koly, "Price of Freedom: Improving Domestic Revenue In Developing Countries by Combining Democracy with State Effectiveness." Thesis, Georgia State University, 2013.
doi: https://doi.org/10.57709/4905465