Volume 21, Number 1, June 2026
| Local Taxation, Digital Financial Inclusion and SME Performance: The Case of CEMAC Countries
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Abstract
This article examines the impact of local taxation and digital financial inclusion on the financial performance of SMEs in CEMAC countries over the period 2000-2023. Using data from the World Enterprise Survey and international and financial indicators, the study employs a fixed-effects model and Driscoll-Kraay standard errors to correct for heteroscedasticity, autocorrelation, and cross-sectional dependence. The results show that local fiscal decentralization promotes SMEs performance by bringing public decision-makers closer to business needs, reducing compliance costs, and improving the efficiency of public services. Simultaneously, digital financial inclusion strengthens access to finance, optimizes transaction management, and enhances the visibility of SMEs to financial institutions. The study highlights that the combination of these two levers constitutes a structuring mechanism for supporting the growth and sustainability of SMEs in CEMAC.
Keywords: SMEs, Tax Decentralization, Digital Financial Inclusion, Financial Performance
JEL Classification: H71, G21, O55