Title:
The Macroeconomic and Institutional Pillars of Public Revenue Mobilization in the Democratic Republic of the Congo: an Ardl Model Application

Authors:
Nzeza Zi Ngeti Claude, Mabiala Ngimbi Christian, Congo

Abstract:

The objective of this study is to estimate the macroeconomic and institutional determinants of public revenue mobilization in the Democratic Republic of Congo (DRC) based on the Musgrave (1969) model. To achieve our objective, we used ARDL modeling. The particularity of the present study is the consideration of tax reforms (VAT and mining reform), the quality of institutions, and the cointegration test performed.

The results show that trade openness, GDP, tax pressure, development aid, and inflation are key macroeconomic factors, while the quality of institutions and tax reforms also play an essential role in the Congolese government's ability to generate revenue. The bounds cointegration test has highlighted the existence of a long-term relationship between revenue mobilization and its macroeconomic and institutional determinants.

DOI: https://doi.org/10.51505/IJEBMR.2024.8903