Analysis of the potential and fiscal effort of the countries of the West African Economic and Monetary Union

Authors: Larba Issa Kobyagda (kobiss13@yahoo.fr), Kouadio Yves Arnaud Binin (binin_yves@outlook.fr)

ISSN: 2709-8575
Affiliations: Economiste, ancien Secrétaire permament du Comité de politique fiscale du Burkina Faso; Economiste
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 22-41
https://doi.org/10.47348/AMTJ/2021/i1a2

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Kobyagda, LI, Binin, KYA
Analysis of the potential and fiscal effort of the countries of the West African Economic and Monetary Union
African Multidisciplinary Tax Journal, 2021 Issue 1, p. 22-41
https://doi.org/10.47348/AMTJ/2021/i1a2

Abstract

This article aimed to analyse the fiscal potential of member countries of the West African Economic and Monetary Union Commission (WAEMU) space. This issue seems to be relevant insofar as fiscal resources are a function of the states’ budget. The method of analysis used in this paper is the stochastic frontier model of Kumbakar, Lien & Hardaker (2014) for the period 1987-2017. The results showed that the tax burden is determined by structural factors and that in most countries the tax potential can be further exploited. Similarly, the tax effort can be improved for a more visible performance in terms of resource mobilisation in the majority of countries. These results can contribute to improving the choice and decisions of the WAEMU Commission on fiscal policies.