A model to explain the impact of government revenue on the quality of governance and the SDGs

Stephen G. Hall; Bernadette Ann-Marie O'Hare

doi:10.35188/UNU-WIDER/2022/236-2

A model to explain the impact of government revenue on the quality of governance and the SDGs

Stephen G. Hall^*, Bernadette Ann-Marie O'Hare

^*Corresponding author for this work

Research output: Working paper

Abstract

This paper empirically investigates the link between the level of government revenue per capita and six indicators of quality of governance in an unbalanced panel data set consisting of all countries in the world (217) using data from 1980 to 2020. It uses single-equation GMM techniques and a VAR and VECM approach to investigate this link.

The results show a strong effect over time whereby an increase in government revenue leads to a steady improvement in governance.

These findings suggest an important virtuous circle between government revenue and governance, indicating that additional government revenue can significantly impact the Sustainable Development Goals more than our previous work has suggested.

Original language	English
Place of Publication	Helsinki
Publisher	United Nations University World Institute for Development Economics Research (UNU-WIDER)
Number of pages	22
DOIs	https://doi.org/10.35188/UNU-WIDER/2022/236-2
Publication status	Published - 22 Sept 2022

Publication series

Name	WIDER Working Paper
No.	102/2022

Keywords

Corruption
GMM
ECM
SDGs

Access to Document

10.35188/UNU-WIDER/2022/236-2

1 Finished

GRADE and Child rights: GRADE and Child rights - Reprogramming Global Tax Policies
O'Hare, B. (PI)
Medical Research Council
2/05/22 → 1/03/23
Project: Standard

6 Article
1 Abstract
1 Other contribution

T20 SOUTH AFRICA Policy Brief - Increasing financing at the country level to advance the SDGs using the Government Revenue and Development Estimations (GRADE)
O'Hare, B.A.-M., Hall, S., Masiya, M. & Hurley, G., 26 Mar 2025, p. 2-10. 10 p.
Research output: Contribution to conference › Abstract › peer-review
A model of the impact of government revenue and quality of governance on schooling
Hall, S. & O'Hare, B.A.-M., Jul 2024, In: International Journal of Educational Development. 108, 7 p., 103055.
Research output: Contribution to journal › Article › peer-review

Open Access
File
Submission for the UN Secretary General's Tax Report to implement GA Resolution 77/244 'Promotion of inclusive and effective co-operation at the United Nations' to finance development and support SDG progress. Submission for the UN Secretary General's Tax Report
O'Hare, B.A.-M., Hall, S., Hannah, E. A., Etter-Phoya, R., Murray, S. W. & Masiya, M., 20 Mar 2023, 4 p.
Research output: Other contribution

Open Access

Cite this

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title = "A model to explain the impact of government revenue on the quality of governance and the SDGs",

abstract = "This paper empirically investigates the link between the level of government revenue per capita and six indicators of quality of governance in an unbalanced panel data set consisting of all countries in the world (217) using data from 1980 to 2020. It uses single-equation GMM techniques and a VAR and VECM approach to investigate this link.The results show a strong effect over time whereby an increase in government revenue leads to a steady improvement in governance.These findings suggest an important virtuous circle between government revenue and governance, indicating that additional government revenue can significantly impact the Sustainable Development Goals more than our previous work has suggested.",

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N2 - This paper empirically investigates the link between the level of government revenue per capita and six indicators of quality of governance in an unbalanced panel data set consisting of all countries in the world (217) using data from 1980 to 2020. It uses single-equation GMM techniques and a VAR and VECM approach to investigate this link.The results show a strong effect over time whereby an increase in government revenue leads to a steady improvement in governance.These findings suggest an important virtuous circle between government revenue and governance, indicating that additional government revenue can significantly impact the Sustainable Development Goals more than our previous work has suggested.

AB - This paper empirically investigates the link between the level of government revenue per capita and six indicators of quality of governance in an unbalanced panel data set consisting of all countries in the world (217) using data from 1980 to 2020. It uses single-equation GMM techniques and a VAR and VECM approach to investigate this link.The results show a strong effect over time whereby an increase in government revenue leads to a steady improvement in governance.These findings suggest an important virtuous circle between government revenue and governance, indicating that additional government revenue can significantly impact the Sustainable Development Goals more than our previous work has suggested.

KW - Corruption

KW - GMM

KW - ECM

KW - SDGs

U2 - 10.35188/UNU-WIDER/2022/236-2

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M3 - Working paper

T3 - WIDER Working Paper

BT - A model to explain the impact of government revenue on the quality of governance and the SDGs

PB - United Nations University World Institute for Development Economics Research (UNU-WIDER)

CY - Helsinki

ER -

A model to explain the impact of government revenue on the quality of governance and the SDGs

Abstract

Publication series

Keywords

Access to Document

Fingerprint

Projects

GRADE and Child rights: GRADE and Child rights - Reprogramming Global Tax Policies

Research output

T20 SOUTH AFRICA Policy Brief - Increasing financing at the country level to advance the SDGs using the Government Revenue and Development Estimations (GRADE)

A model of the impact of government revenue and quality of governance on schooling

Submission for the UN Secretary General's Tax Report to implement GA Resolution 77/244 'Promotion of inclusive and effective co-operation at the United Nations' to finance development and support SDG progress. Submission for the UN Secretary General's Tax Report

Cite this