QUALITY OF GOVERNANCE AND TAX REVENUE GENERATION IN WEST AFRICA: A POLITICAL PROCESS THEORY PERSPECTIVE

Abstract

Abstract This article examined governance quality indicators such as control of corruption, political stability, voice and accountability and GDP per capita growth on tax revenue generation. This study conducted a panel analysis on all variables from the 15 West African countries between the periods of 2009 -2018. The pull result indicated significant and positive relationship with control of corruption, political stability and tax revenue generation. Regulatory quality typified a negative and insignificant relationship; depicting the weak nature of regulatory structures towards revenue mobilization in the West African region. This study suggested digitalization of tax system, formidable regional economic integration against illicit outflows and improvement of governance culture in order to drive tax compliance and revenue mobilization. Future research should consider relationship between tax revenue generation and variables such as tax payers’ confidence and tax system digitalization. Keywords: quality of governance; tax revenue generation; GDP per capita growth; illicit financial leakages, Tax system digitalization, regional economic integration, West Africa, Political process theory, tax compliance, confidence and effectiveness