2016 Public Administration Other

Taxation and Government Quality

Rasmus Broms

The existence of political systems characterized by well-functioning governance and high institutional quality has come to be one of the most discussed fields within the social sciences. Research focusing on developing countries highlights the importance of the institution, in terms of an efficient administration that is free of corruption and defends property rights, for a country to get out of poverty and instability. This dissertation contributes to the discussion by examining whether taxation can generate institutional quality.

The report was presented during the seminar Samhällsstyrning – nationellt och globalt.

Main findings

  • Countries with higher tax burden have higher levels of institutional quality. Higher tax pressures also seem to be a reason for good institutions. This relationship is driven by democratic states.
  • Democratization processes generally have a negative effect on the relationship between tax and institutional quality, at least in the short term.
  • Historical levels and processes for taxation can be linked to today’s institutional quality.
  • Individuals who pay taxes have a greater political interest than those who do not pay taxes.

Rasmus Broms works as a researcher at the Department of Political Science, Gothenburg University. He defended his dissertation Taxation and Government Quality in March 2016.