Competition and Tax Evasion: A Cross Country Study
AbstractThis paper investigates the determinants of tax evasion, utilizing rich cross-country data of firm-level survey from the World Bank, and shows that competition is a key factor determining evasion activities; however its effect displays a decreasing trend. It is also shown that business obstacles facing firms such as tax administration and unfair practices play significant roles in explaining tax evasion. Firm characteristics such as size, age, ownership are also found important determinants. The empirical analysis controls for industry and country-level effects, for instance quality of the legal environment.
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Bibliographic InfoArticle provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).
Volume (Year): 42 (2012)
Issue (Month): 2 (September)
tax evasion; competition; legal environment;
Find related papers by JEL classification:
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
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