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Inequality in Ghana: Assessing the Impact of Government Tax and Expenditure Policies Over a Century

Aboagye, Prince Young LU (2026)
Abstract
Although rising inequality in sub-Saharan Africa has revived debates on the distributional effects of government tax and expenditure policies, there are relatively few long-term empirical studies on this issue. This chapter examines how government fiscal policies—both taxation and public spending—have evolved and shaped inequality trends in colonial and postcolonial Ghana. It finds that fiscal policy has generally had limited redistributive impact, due to the narrow tax base and a persistent bias in public spending toward the export sector. While calls for African governments to learn to tax more and spend better in order to reduce inequality are not misplaced, an understanding of the structural and political constraints that have... (More)
Although rising inequality in sub-Saharan Africa has revived debates on the distributional effects of government tax and expenditure policies, there are relatively few long-term empirical studies on this issue. This chapter examines how government fiscal policies—both taxation and public spending—have evolved and shaped inequality trends in colonial and postcolonial Ghana. It finds that fiscal policy has generally had limited redistributive impact, due to the narrow tax base and a persistent bias in public spending toward the export sector. While calls for African governments to learn to tax more and spend better in order to reduce inequality are not misplaced, an understanding of the structural and political constraints that have historically limited the redistributive potential of fiscal policy is even more urgently needed. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
in press
subject
host publication
The Political Economy of Ghana in the Long Twentieth Century
editor
Austin, Gareth and Adjepong-Boateng, Kofi
publisher
Boydell & Brewer
language
English
LU publication?
yes
id
d16a61fa-4169-4698-a814-ff96dae19140
date added to LUP
2025-11-25 09:34:17
date last changed
2025-11-26 16:27:33
@inbook{d16a61fa-4169-4698-a814-ff96dae19140,
  abstract     = {{Although rising inequality in sub-Saharan Africa has revived debates on the distributional effects of government tax and expenditure policies, there are relatively few long-term empirical studies on this issue. This chapter examines how government fiscal policies—both taxation and public spending—have evolved and shaped inequality trends in colonial and postcolonial Ghana. It finds that fiscal policy has generally had limited redistributive impact, due to the narrow tax base and a persistent bias in public spending toward the export sector. While calls for African governments to learn to tax more and spend better in order to reduce inequality are not misplaced, an understanding of the structural and political constraints that have historically limited the redistributive potential of fiscal policy is even more urgently needed.}},
  author       = {{Aboagye, Prince Young}},
  booktitle    = {{The Political Economy of Ghana in the Long Twentieth Century}},
  editor       = {{Austin, Gareth and Adjepong-Boateng, Kofi}},
  language     = {{eng}},
  publisher    = {{Boydell & Brewer}},
  title        = {{Inequality in Ghana: Assessing the Impact of Government Tax and Expenditure Policies Over a Century}},
  year         = {{2026}},
}