UID:
edoccha_9959745941302883
Format:
1 online resource (34 pages)
ISBN:
1-5135-2241-8
,
1-5135-2244-2
Series Statement:
IMF Working Papers
Content:
The extent of tax compliance has important implications for revenue yield, efficiency and the fairness of any tax system. Tax evasion undermines revenue collection, distorts competition, and undermines a country’s development prospects. In this paper, we investigate whether higher productivity causally leads to lower tax evasion. We first present stylized facts consistent with this view and develop a model that illustrates one potential transmission channel. Second, we test the model predictions at the firm level using the self-reported share of declared income as proxy for tax evasion for a large sample of emerging and developing economies. Our results suggests that productivity improvements by firms can lead to lower tax evasion.
Note:
Cover -- Contents -- Abstract -- I. Introduction -- II. Macroeconomic Stylized Facts -- III. Theoretical Framework -- IV. Empirical Strategy -- A. Firm-Level Data -- B. Regional Instrument -- C. International Instrument -- V. Econometric Results -- A. OLS -- B. IV Regressions -- C. Robustness Checks -- VI. Conclusion -- References -- Appendix -- Appendix 1. Macroeconomic Stylized Facts: Details of the Estimation and Robustness Checks -- Appendix 2. Derivations and Model Extension -- Appendix 3. Variable Definitions and Descriptive Statistics -- Appendix 4. Regional and International Instrument Construction -- Appendix 5. First-Stage Regressions -- Tables -- Table 1. OLS Results -- Table 2. IV Results -- Table 3. IV Robustness Checks -- Table Appendix 1. 1. Variable definition -- Table Appendix 1. 2. Baseline specifications -- Table Appendix 1. 3. Robustness checks -- Table Appendix 1. 4. Robustness checks with interaction terms -- Table Appendix 3. 1. Variables, Definitions and Units -- Table Appendix 3. 2. Descriptive Statistics of IV Baseline Sample -- Table Appendix 4. 1. Regional Instruments (Main Sample) -- Table Appendix 4. 2. Commodity Country Pairs (IV Baseline Sample) -- Table Appendix 5. 1. First Stage of Table 2 -- Table Appendix 5. 2. First Stage of Table 3 -- Figure -- Figure 1. OLS and 2-stage LS results.
Additional Edition:
ISBN 1-5135-1861-5
Language:
English
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