On the Relationship Between Corruption Perception and Tax Morale: Does Natural Resource Abundance Matter?

Abstract

Using data from the latest wave of the Afrobarometer surveys, we examine the heterogeneous effect of corruption perception on tax morale across resource-rich and -poor countries in Africa. We find that perceived levels of corruption among public officials reduce tax morale and the effect is heterogenous across resource-rich and poor countries in Africa. Specifically, the availability of natural resources (and their exploitation) in a country attenuates the tax morale-reducing effect of corruption perception in Africa. This implies that policies to deepen domestic revenue mobilisation must be context specific.