This paper investigates the determinants of tax revenue performance in all 15 Southern African Development Community countries during 1990-2010, using panel data. The investigation makes use of two estimation techniques in testing for country specificity. These are the least squares dummy variables fixed effects and the feasible generalised least squares by Park (1967) and Kmenta (1986). The extreme-bound analysis technique is also used in delineating the various causal relationships (including a sensitivity analysis).
Taxation, Subsidies, and Revenue: General
Despite South Africa’s relatively decentralized governance and administrative structure, an important feature of the country’s intergovernmental fiscal relations system is the gap that exists between the expenditure responsibilities of sub-national authorities and their assigned revenue bases. The resulting vertical fiscal imbalance is mainly addressed via significant intergovernmental transfers to provinces and local governments.