IDEAS home Printed from https://ideas.repec.org/a/taf/reroxx/v36y2023i2p2142634.html
   My bibliography  Save this article

Digitalization and tax evasion: the moderation effect of corruption

Author

Listed:
  • Ahmed Yamen
  • Ali Coskun
  • Hounaida Mersni

Abstract

This study investigates the impact of digitalization adoption on tax evasion and tests the moderation effect of corruption on this relationship. The World Bank’s digitalization adoption index is used to measure the level of digitalization adoption, and the shadow economy is chosen as a proxy for tax evasion. The research is conducted based on a comprehensive dataset including data from 133 countries. The results indicate a negative and significant relationship between tax evasion and digitalization adoption of businesses and people, which indicates that digitalization helps to reduce tax evasion. Additional results show that digitalization is highly effective in reducing tax evasion in low-corruption countries compared to high-corruption countries. Our findings are potentially useful for policymakers in identifying digitalization as an effective tool for deterring financial crimes. Investment in technology can help in increasing tax revenues and allow governments to be more efficient in allocating resources.

Suggested Citation

  • Ahmed Yamen & Ali Coskun & Hounaida Mersni, 2023. "Digitalization and tax evasion: the moderation effect of corruption," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 36(2), pages 2142634-214, July.
    • Handle: RePEc:taf:reroxx:v:36:y:2023:i:2:p:2142634
    DOI: 10.1080/1331677X.2022.2142634
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1331677X.2022.2142634
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1331677X.2022.2142634?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:reroxx:v:36:y:2023:i:2:p:2142634. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rero .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.