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Fighting Corruption and Enhancing Tax Compliance through Digitization: Achieving Sustainable Development in Romania

Author

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  • Mina Fanea-Ivanovici

    (Department of Economics and Economic Policy, Faculty of Theoretical and Applied Economics, The Bucharest University of Economic Studies, 6 Romana Square, 010374 Bucharest, Romania)

  • Radu-Cristian Muşetescu

    (Department of International Business and Economics, Faculty of International Business and Economics, The Bucharest University of Economic Studies, 41 Dacia Blvd., 010404 Bucharest, Romania)

  • Marius-Cristian Pană

    (Department of Economics and Economic Policy, Faculty of Theoretical and Applied Economics, The Bucharest University of Economic Studies, 6 Romana Square, 010374 Bucharest, Romania)

  • Cristina Voicu

    (Department of Economics and Economic Policy, Faculty of Theoretical and Applied Economics, The Bucharest University of Economic Studies, 6 Romana Square, 010374 Bucharest, Romania)

Abstract

Fighting corruption and enhancing tax compliance through digital public services represent key factors for increasing sustainable development in Romania. We argue that fighting corruption may increase the level of sustainable development, through digital pubic services. Using digital public services leads to the increase of the level of tax compliance, because entrepreneurs will feel more confident and responsible and they will decide to better comply. Tax regulations can affect the level of tax compliance through the additional costs they generate. The discussion is based on the consideration of the costs generated by compliant behavior and we explain how such costs influence the entrepreneurs’ decision in the fiscal environment. If the costs are higher, entrepreneurs will take evasive initiatives and will refuse to comply. Among the numerous tools developed to fight corruption, the use of communication technologies has recently been researched and there is still need for further research in the Romanian economic environment. The use of digital public services reduces costs for entrepreneurs and increases their confidence in state institutions due to higher levels of transparency. We argue for increasing sustainable development in Romania through digital public services, thus fighting corruption and enhancing tax compliance.

Suggested Citation

  • Mina Fanea-Ivanovici & Radu-Cristian Muşetescu & Marius-Cristian Pană & Cristina Voicu, 2019. "Fighting Corruption and Enhancing Tax Compliance through Digitization: Achieving Sustainable Development in Romania," Sustainability, MDPI, vol. 11(5), pages 1-24, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:5:p:1480-:d:212715
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    Cited by:

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    2. Richard Kasa & Gábor Réthi & György Hauber & Krisztina Szegedi, 2023. "Simulation of Corruption Decisions—An Agent-Based Approach," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    3. Muhammad Imran & Xiangyang Liu & Rongyu Wang & Shah Saud & Yun Zhao & Muhammad Jalal Khan, 2022. "The Influence of Digital Economy and Society Index on Sustainable Development Indicators: The Case of European Union," Sustainability, MDPI, vol. 14(18), pages 1-16, September.
    4. Lingfu Kong & Emrah Sofuoğlu & Balogun Daud Ishola & Shujaat Abbas & Qingran Guo & Khurshid Khudoykulov, 2024. "Sustainable development through structural transformation: a pathway to economic, social, and environmental progress," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-34, April.
    5. Alfonso Marino & Paolo Pariso, 2021. "Digital economy: technological, organizational and cultural contexts for the development of cooperation in Europe," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(2), pages 363-383, December.
    6. Adomako, Samuel & Amankwah-Amoah, Joseph & Tarba, Shlomo Y. & Khan, Zaheer, 2021. "Perceived corruption, business process digitization, and SMEs’ degree of internationalization in sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 123(C), pages 196-207.
    7. Sebastian Kot & Róbert Štefko & Ján Dobrovič & Rastislav Rajnoha & Jan Váchal, 2019. "The Main Performance and Effectiveness Factors of Sustainable Financial Administration Reform Using Multidimensional Statistical Tools," Sustainability, MDPI, vol. 11(13), pages 1-21, June.

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