TAX REVENUE AND TRANSPORTATION INFRASTRUCTURE EXPECTATION GAP: EVIDENCE FROM SUB-SAHARAN AFRICAN COUNTRIES
Keywords:
Infrastructural expectation gap, Road transportation, Sub-Saharan African countries, Tax revenue, Transportation infrastructureAbstract
One of the key factors that play a pivotal role in a sub-Sahara African region’s economic growth is the presence of a reliable and efficient road network system. Governments’ spending on infrastructure in this region remains poses inefficient management of scarce resources and to the detriment of the taxpayers considering the amount budgeted based on the actual needs and the actual investment because the growth in the economies does not physically depict infrastructural development and hence creates a gap in the expectations of the stakeholders. The study employed ex-post facto research design. The population of the study was 48 Sub-Saharan African countries based on the 2020 United Nations categorization. Five countries were purposively chosen for the study owing to data availability covering a sample period of 2007-2020. Data were sourced from the Tax Authority annual reports of the selected countries, World Development Indicators, International Monetary Fund (IMF), World Statistics Bulletin, Global Infrastructural Hub and Central Banks annual reports. Transportation infrastructure expectation gap was estimated using system general method of moments. Descriptive and inferential (Multiple Regression) statistics were used to analyze the data. The study found that tax revenue jointly had significant effect on transportation infrastructural expectation gap (Adj.R2 = 0.33, W(4, 263) = 12.26, p < .05) in Sub-Sahara Africa. The study concluded that tax revenue influenced infrastructural expectation gap in Sub-Saharan African countries. It was recommended that government of sub-Saharan African countries should prioritize stakeholders’ interest when making strategic decisions to reduce the transportation infrastructural expectation gap in these countries.
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