Modelling Social Responsibility as a Systemic Driver of Fiscal Performance and Sustainable Development in Emerging Economies
DOI:
https://doi.org/10.64922/jassee.v1i1.77Keywords:
digital taxation, social responsibility, fiscal performance, Sustainable development outcomes, Institutional trust, Fiscal sociology, Emerging economies, GhanaAbstract
This study examines how digital taxation (DT), as strategic leadership practices (SLP), and social responsibility (SR) interact to influence fiscal performance (FP) and sustainable development outcomes (SDOs) in emerging economies. It explores taxation as a reciprocal social contract between citizens and government, highlighting the mediating role of SR, captured through tax compliance and institutional trust, in strengthening fiscal performance and developmental outcomes. A mixed-methods design combined quantitative survey data (n = 112) and qualitative interviews (n = 10) from tax experts, business owners, and public officials. Partial Least Squares Structural Equation Modelling (SmartPLS 3) tested hypothesized relationships among DT, SR, FP, and SDGs, while thematic analysis of interviews provided contextual depth and triangulation. DT significantly enhances FP (β = 0.762) and SDOs (β = 0.534). SR strongly predicts FP (β = 0.359) but exerts only a weak direct effect on SDOs (β = 0.063). Mediation analysis confirmed that SR and FP jointly transmit the effects of DT to SDGs, establishing FP as the principal pathway linking compliance and governance to sustainable development. Tax administrators should adopt transparent, data-driven, and user-friendly digital systems to enhance compliance, reduce avoidance, and expand the tax base. Governments should earmark digital tax revenues for visible public goods to foster trust and voluntary compliance. DT can strengthen the social contract when citizens perceive fairness and accountability. Transparent reinvestment of tax revenues in education, infrastructure, and healthcare deepens institutional trust and aligns fiscal policy with SDGs 4, 9, 16, and 17, through SDOs. This paper extends fiscal sociology to the digital era by empirically validating SR as a mediating mechanism between DT, FP, and SDOs. It integrates behavioural, institutional, and developmental dimensions within a single model, offering a novel framework for understanding how fiscal legitimacy translates into sustainable development. The study focuses on Ghana, with comparative references to Uganda, Hungary, Canada, and the EU, limiting generalizability. Future research should expand cross-country analyses and incorporate macroeconomic indicators to assess long-term developmental effects of DT systems.
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