Violent conflict and taxation : Micro-level evidence from Burkina Faso
(2025) In WIDER Working Paper 115(25). p.1-20- Abstract
- This study analyzes how violent conflict influences taxation in a poor, conflict-affected country, Burkina Faso. We use a unique, large, and representative panel dataset on tax collection of firms between 2015 and 2022 and geographically match these data with indicators of violent conflict at the municipal level. We find that firms pay a lower amount of tax in areas affected by violence. We also find that both turnover and firm survival decrease in areas as they become more insecure. Our findings are an indication that conflict resolution in Burkina Faso needs to be interlinked with policy interventions towards peace and stability that help strengthen firms’ possibilities to function and help them to pay more tax adding needed revenues to... (More)
- This study analyzes how violent conflict influences taxation in a poor, conflict-affected country, Burkina Faso. We use a unique, large, and representative panel dataset on tax collection of firms between 2015 and 2022 and geographically match these data with indicators of violent conflict at the municipal level. We find that firms pay a lower amount of tax in areas affected by violence. We also find that both turnover and firm survival decrease in areas as they become more insecure. Our findings are an indication that conflict resolution in Burkina Faso needs to be interlinked with policy interventions towards peace and stability that help strengthen firms’ possibilities to function and help them to pay more tax adding needed revenues to finance public spending. (Less)
- Abstract (Swedish)
- This study analyzes how violent conflict influences taxation in a poor, conflict-affected country, Burkina Faso. We use a unique, large, and representative panel dataset on tax collection of firms between 2015 and 2022 and geographically match these data with indicators of violent conflict at the municipal level. We find that firms pay a lower amount of tax in areas affected by violence. We also find that both turnover and firm survival decrease in areas as they become more insecure. Our findings are an indication that conflict resolution in Burkina Faso needs to be interlinked with policy interventions towards peace and stability that help strengthen firms’ possibilities to function and help them to pay more tax adding needed revenues to... (More)
- This study analyzes how violent conflict influences taxation in a poor, conflict-affected country, Burkina Faso. We use a unique, large, and representative panel dataset on tax collection of firms between 2015 and 2022 and geographically match these data with indicators of violent conflict at the municipal level. We find that firms pay a lower amount of tax in areas affected by violence. We also find that both turnover and firm survival decrease in areas as they become more insecure. Our findings are an indication that conflict resolution in Burkina Faso needs to be interlinked with policy interventions towards peace and stability that help strengthen firms’ possibilities to function and help them to pay more tax adding needed revenues to finance public spending. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/3802bc46-1afb-457e-a97a-651863532222
- author
- Sepahvand, Mohammad LU ; Some, Sankar Placide ; Lindskog, Annika ; Isaksson, Ann-Sofie and Congdon Fors, Heather
- organization
- publishing date
- 2025-12
- type
- Working paper/Preprint
- publication status
- published
- subject
- keywords
- Violent conflict, Business tax, Firms, Burkina Faso, Violent conflict, Business tax, Firms, Burkina Faso
- in
- WIDER Working Paper
- volume
- 115
- issue
- 25
- edition
- 25
- pages
- 20 pages
- ISSN
- 1798-7237
- ISBN
- 978-92-9267-674-2
- DOI
- 10.35188/UNU-WIDER/2025/674-2
- language
- English
- LU publication?
- yes
- id
- 3802bc46-1afb-457e-a97a-651863532222
- alternative location
- https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2025-115-violent-conflict-taxation.pdf
- date added to LUP
- 2026-02-03 15:02:44
- date last changed
- 2026-02-04 14:38:24
@misc{3802bc46-1afb-457e-a97a-651863532222,
abstract = {{This study analyzes how violent conflict influences taxation in a poor, conflict-affected country, Burkina Faso. We use a unique, large, and representative panel dataset on tax collection of firms between 2015 and 2022 and geographically match these data with indicators of violent conflict at the municipal level. We find that firms pay a lower amount of tax in areas affected by violence. We also find that both turnover and firm survival decrease in areas as they become more insecure. Our findings are an indication that conflict resolution in Burkina Faso needs to be interlinked with policy interventions towards peace and stability that help strengthen firms’ possibilities to function and help them to pay more tax adding needed revenues to finance public spending.}},
author = {{Sepahvand, Mohammad and Some, Sankar Placide and Lindskog, Annika and Isaksson, Ann-Sofie and Congdon Fors, Heather}},
isbn = {{978-92-9267-674-2}},
issn = {{1798-7237}},
keywords = {{Violent conflict; Business tax; Firms; Burkina Faso; Violent conflict; Business tax; Firms; Burkina Faso}},
language = {{eng}},
note = {{Working Paper}},
number = {{25}},
pages = {{1--20}},
series = {{WIDER Working Paper}},
title = {{Violent conflict and taxation : Micro-level evidence from Burkina Faso}},
url = {{http://dx.doi.org/10.35188/UNU-WIDER/2025/674-2}},
doi = {{10.35188/UNU-WIDER/2025/674-2}},
volume = {{115}},
year = {{2025}},
}