Taxation improves governance: but which taxes matter and which governance dimensions improve?

Description

A body of influential research indicates that taxation may produce a ‘governance dividend’, by enhancing state accountability, institutional quality, and public service provision. Indeed, developing effective tax systems—essential for financing development goals as recognised in SDG 17: Partnerships for the goals—is an important part of what the governments of lower income economies try to do. But do effective tax systems also lead to governance improvements?