Tax and income inequality: evidence from Sub-Saharan Africa
International Journal of Development Issues
ISSN: 1446-8956
Article publication date: 7 July 2023
Issue publication date: 1 November 2023
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.
Keywords
Citation
Brown, T.A.K., Bokpin, G.A. and Sarpong-Kumankoma, E. (2023), "Tax and income inequality: evidence from Sub-Saharan Africa", International Journal of Development Issues, Vol. 22 No. 3, pp. 345-360. https://doi.org/10.1108/IJDI-12-2022-0277
Publisher
:Emerald Publishing Limited
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