Trust, Corruption, and Tax Compliance in Fragile States: On a Quest for Transforming Africa into Future Global Powerhouse

This study explores the complex relationship between trust, corruption, and tax compliance in fragile states. It examines factors influencing public trust in three government branches: the ruling party (a proxy for the executive), the parliament, and the local government, and examines whether trust...

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Main Authors: Hafte Gebreselassie Gebrihet, Yibrah Hagos Gebresilassie, Gabriel Temesgen Woldu
Format: Article
Language:English
Published: MDPI AG 2023-12-01
Series:Social Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-0760/13/1/3
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author Hafte Gebreselassie Gebrihet
Yibrah Hagos Gebresilassie
Gabriel Temesgen Woldu
author_facet Hafte Gebreselassie Gebrihet
Yibrah Hagos Gebresilassie
Gabriel Temesgen Woldu
author_sort Hafte Gebreselassie Gebrihet
collection DOAJ
description This study explores the complex relationship between trust, corruption, and tax compliance in fragile states. It examines factors influencing public trust in three government branches: the ruling party (a proxy for the executive), the parliament, and the local government, and examines whether trust in these arms of government impacts tax compliance. We conducted this investigation using Afrobarometer survey data from Guinea, Mali, Sudan, and Zimbabwe as case studies. The study found that restoring public trust and promoting tax compliance are tangible outcomes arising from a steadfast commitment to electoral integrity, transparency, and accountability. This interplay becomes more vital within the framework of state fragility, where institutions are highly strained. The study highlighted that the existence of rampant corruption reduces trust in the ruling party, parliament, and local government council. Furthermore, the joint interaction between corruption and lack of trust significantly undermines the willingness of taxpayers to adhere to tax administration laws. These insights emphasise that combating corruption becomes not only a governance step but also vital to state stability. Thus, African governments should prioritise electoral integrity and combat corruption through enhanced accountability to pave the way for improved governance, enhanced trust, and a more stable path toward a global powerhouse.
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spelling doaj.art-e224e0f8fcf14c3ba3761c99abdf0f672024-01-26T18:27:36ZengMDPI AGSocial Sciences2076-07602023-12-01131310.3390/socsci13010003Trust, Corruption, and Tax Compliance in Fragile States: On a Quest for Transforming Africa into Future Global PowerhouseHafte Gebreselassie Gebrihet0Yibrah Hagos Gebresilassie1Gabriel Temesgen Woldu2Department of Pedagogy, Religion, and Social Studies, Western Norway University of Applied Sciences, 5063 Bergen, NorwayDepartment of Economics, Aksum University, Aksum P.O. Box 1010, Tigray, EthiopiaInstitute of Economics and Economic Development, Theoretical Economics Department, University of Szeged, 6722 Szeged, HungaryThis study explores the complex relationship between trust, corruption, and tax compliance in fragile states. It examines factors influencing public trust in three government branches: the ruling party (a proxy for the executive), the parliament, and the local government, and examines whether trust in these arms of government impacts tax compliance. We conducted this investigation using Afrobarometer survey data from Guinea, Mali, Sudan, and Zimbabwe as case studies. The study found that restoring public trust and promoting tax compliance are tangible outcomes arising from a steadfast commitment to electoral integrity, transparency, and accountability. This interplay becomes more vital within the framework of state fragility, where institutions are highly strained. The study highlighted that the existence of rampant corruption reduces trust in the ruling party, parliament, and local government council. Furthermore, the joint interaction between corruption and lack of trust significantly undermines the willingness of taxpayers to adhere to tax administration laws. These insights emphasise that combating corruption becomes not only a governance step but also vital to state stability. Thus, African governments should prioritise electoral integrity and combat corruption through enhanced accountability to pave the way for improved governance, enhanced trust, and a more stable path toward a global powerhouse.https://www.mdpi.com/2076-0760/13/1/3Africa Agenda 2063corruptionSDGs 2030state fragilitytax compliancepublic trust
spellingShingle Hafte Gebreselassie Gebrihet
Yibrah Hagos Gebresilassie
Gabriel Temesgen Woldu
Trust, Corruption, and Tax Compliance in Fragile States: On a Quest for Transforming Africa into Future Global Powerhouse
Social Sciences
Africa Agenda 2063
corruption
SDGs 2030
state fragility
tax compliance
public trust
title Trust, Corruption, and Tax Compliance in Fragile States: On a Quest for Transforming Africa into Future Global Powerhouse
title_full Trust, Corruption, and Tax Compliance in Fragile States: On a Quest for Transforming Africa into Future Global Powerhouse
title_fullStr Trust, Corruption, and Tax Compliance in Fragile States: On a Quest for Transforming Africa into Future Global Powerhouse
title_full_unstemmed Trust, Corruption, and Tax Compliance in Fragile States: On a Quest for Transforming Africa into Future Global Powerhouse
title_short Trust, Corruption, and Tax Compliance in Fragile States: On a Quest for Transforming Africa into Future Global Powerhouse
title_sort trust corruption and tax compliance in fragile states on a quest for transforming africa into future global powerhouse
topic Africa Agenda 2063
corruption
SDGs 2030
state fragility
tax compliance
public trust
url https://www.mdpi.com/2076-0760/13/1/3
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