Advanced Search
MyIDEAS: Login to save this article or follow this journal

Determinants of Tax Evasion in Ghana: 1970-2010

Contents:

Author Info

  • Betty Annan

    ()
    (Department of Economics, University of Ghana, Box LG 57, Legon, Acca, Ghana)

  • William Bekoe

    ()
    (Department of Economics, University of Ghana, Box LG 57, Legon, Acca, Ghana)

  • Edward Nketiah-Amponsah

    ()
    (Department of Economics, University of Ghana, Box LG 57, Legon, Acca, Ghana)

Registered author(s):

    Abstract

    This paper investigates the factors that determine tax evasion in Ghana using time series data covering the period 1970-2010. Employing the currency demand approach, we obtained the estimates of the shadow economy and the level of tax evasion for the entire period. Using the bounds test technique of cointegration we found that the variables included in our ARDL model are bounded together. The short-run model indicates that per capita income, the average tax rate, age and inflation were positively and significantly associated with tax evasion while gender showed an inverse and significant relationship with tax evasion. The error correction term was negative, statistically significant and suggests that 45 per cent of the deviation from equilibrium tax evasion is corrected each year. In addition, the Granger causality test indicates that tax and inflation rates aid in predicting future levels of tax evasion in Ghana. The paper further discusses the policy implications of the findings.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ijesar.org/docs/volume6_issue3/tax_evasion_ghana.pdf
    Download Restriction: no

    File URL: http://www.ijesar.org/volume6_issue3.php
    Download Restriction: no

    Bibliographic Info

    Article provided by Technological Educational Institute (TEI) of Kavala, Greece in its journal International Journal of Economic Sciences and Applied Research (IJESAR).

    Volume (Year): 6 (2013)
    Issue (Month): 3 (December)
    Pages: 97-121

    as in new window
    Handle: RePEc:tei:journl:v:6:y:2013:i:3:p:97-121

    Contact details of provider:
    Web page: http://www.ijesar.org/
    More information through EDIRC

    Related research

    Keywords: tax evasion; bounds testing; error correction; granger causality; Ghana;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:6:y:2013:i:3:p:97-121. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kostas Stergidis).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.