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Shadow economy and tax revenue in Africa

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  • Kodila-Tedika, Oasis
  • Mutascu, Mihai

Abstract

The paper explores the effects of shadow economy on tax revenues, in the case of several African countries, based on a panel-model approach. The data-set covers the period 1999-2007. The main results reveal that the shadow economy has a significant and negative impact on tax revenues. In other word, when the shadow economy tends to extend, the level of tax revenues decreases. These outputs show that the African governments, in order to maximise the collected tax revenues, should better “control” the shadow economy phenomenon.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50812.

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Date of creation: 2013
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Handle: RePEc:pra:mprapa:50812

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Keywords: Shadow economy; Tax revenues; Effects; Implications; Africa;

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  1. Richard M. Bird & Jorge Martinez-Vazquez & Benno Torgler, 2004. "Societal Institutions and Tax Effort in Developing Countries," International Tax Program Papers, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto 0411, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
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Cited by:
  1. Kodila-Tedika, Oasis & Mutascu, Mihai, 2014. "Tax Revenues and Intelligence: A Cross-Sectional Evidence," MPRA Paper 57581, University Library of Munich, Germany.

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