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The Interplay Between Economic Freedom and Tax Revenue Performance: Panel Evidence from SADC Naape, Baneng
Journal of Economics, Business, and Accountancy Ventura Vol. 24 No. 2 (2021): August - November 2021
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v24i2.2757

Abstract

This study aims to scrutinize the interplay between economic freedom and tax revenue performance in 14 SADC countries. The study makes use of dynamic panel data spanning from 2000 – 2017 with 238 year-country observations. The econometric modeling applied includes Generalized Methods of Moments and Cross-country Correlations. The dynamic panel estimation results indicate that both conventional and unconventional determinants of tax revenue mobilization are statistically significant in explaining variations in tax revenue performance. In contrast to earlier studies, the researcher found that economic freedom exhibits a negative impact on tax revenue mobilization. These findings can be based on the assumption that African countries are characterized by agrarian activities which take place in the informal sector and are thus are difficult to regulate and tax. As a result, the benefits of economic freedom cannot be fully realized. The policy implication is for African countries to invest substantially in the manufacturing sector to increase tax revenue and eliminate the substantial informal sector. Further to this, governments in SADC countries should focus more on reducing red tape and unnecessary bureaucracy to enhance the ease of doing business and realize the full benefits of economic freedom.
DOES ECONOMIC LIBERTY BOLSTER ECONOMIC PERFORMANCE? Naape, Baneng
Journal of Social Political Sciences Vol 5 No 2 (2024): May 2024
Publisher : Universitas Nasional

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52166/jsps.v5i2.171

Abstract

Institutional quality and economic liberty have emerged as key determinants of economic growth and development. This study investigates the relationship between economic liberty and economic growth in the Southern African Development Community (SADC) region. Utilizing a dynamic system generalized method of moments (GMM) and Granger causality analysis, the research reveals a positive and significant relationship between components of economic liberty and economic growth. The findings also indicate that economic liberty and economic growth are interdependent, suggesting that they are jointly determined. These results underscore the importance of deepening regional integration among SADC member states through increased intra-regional trade, financial integration, and the implementation of infrastructure projects to lower business costs.
Exploring South Africa’s Policy Dilemmas and Strategic Pathways Naape, Baneng
International Journal of Business, Economics, and Social Development Vol. 7 No. 1 (2026): International Journal of Business, Economics, and Social Development (IJBESD)
Publisher : Rescollacom (Research Collaborations Community)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46336/ijbesd.v7i1.1141

Abstract

This study had two primary objectives. It aimed to present sterilised facts on South Africa’s recent economic performance and its underlying drivers, and to propose actionable policy measures for addressing related socioeconomic challenges. The study reveals that while the democratic government has made strides in addressing historical disparities, significant gaps persist, particularly in tackling income and wealth inequality, enhancing state legitimacy, and promoting equitable economic opportunities and outcomes for all. The country continues to grapple with deep-rooted issues, including disparities in education, deteriorating infrastructure, widespread unemployment and inequality, and systemic corruption. The government should prioritise educational equity by investing in under-resourced schools, attracting skilled educators, and fostering inclusive learning environments. There is also a pressing need to strengthen infrastructure management, prioritise ongoing maintenance, and channel resources into research and development to spur innovation. To address inequality, the government should implement supply-side solutions, focusing on skill development, supporting small businesses, and enforcing fair labour practices. Combating corruption requires principled leadership, transparent governance, and active citizen engagement. Implementing these measures could help ease structural constraints and deliver both medium and long-term socioeconomic gains.