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Tax Buoyancy: A Comparative Study Between Kenya and South Africa

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Abstract

One of the most important measures of efficiency of tax systems in public finance is tax buoyancy, the responsiveness of tax revenues to national income changes. Since buoyancy echoes the capacity of tax structures to generate revenues during economic growth, this study attempts to estimate the buoyancies of tax revenue components using annual data from 1972 to 2014 in the largest economies in eastern and southern Africa. It applies the error correction model to measure the short- and long-run estimates of tax buoyancy and the level of convergence between the two. The results suggest that the tax systems for both countries are buoyant both in the long and short run with an average speed of adjustment between the long-run and the short-run estimates.

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Correspondence to Barrack Mandela .

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Appendices

Appendices

Appendix 3.1 Johansen cointergration results for Kenya
Appendix 3.2 Johansen cointergration results for South Africa

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Olukuru, J., Mandela, B. (2017). Tax Buoyancy: A Comparative Study Between Kenya and South Africa. In: Biekpe, N., Cassimon, D., Mullineux, A. (eds) Development Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-54166-2_3

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  • DOI: https://doi.org/10.1007/978-3-319-54166-2_3

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-54165-5

  • Online ISBN: 978-3-319-54166-2

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