IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2017-095.html
   My bibliography  Save this paper

Tax Administration and Firm Performance: New Data and Evidence for Emerging Market and Developing Economies

Author

Listed:
  • Ms. Era Dabla-Norris
  • Florian Misch
  • Mr. Duncan Cleary
  • Munawer Khwaja

Abstract

Tax compliance costs tend to be disproportionately higher for small and young businesses. This paper examines how the quality of tax administration affects firm performance for a large sample of firms in emerging market and developing economies. We construct a novel, internationally comparable, and multidimensional index of tax administration quality (the TAQI) using information from the Tax Administration Diagnostic Assessment Tool. We show that better tax administration attenuates the productivity gap of small and young firms relative to larger and older firms, a result that is robust to controlling for other aspects of tax policy and of economic governance, alternative definitions of small and young firms, and measures of the quality of tax administration. From a policy perspective, we provide evidence that countries can reap growth and productivity dividends from improvements in tax administration that lower compliance costs faced by firms.

Suggested Citation

  • Ms. Era Dabla-Norris & Florian Misch & Mr. Duncan Cleary & Munawer Khwaja, 2017. "Tax Administration and Firm Performance: New Data and Evidence for Emerging Market and Developing Economies," IMF Working Papers 2017/095, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2017/095
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=44838
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arun Kumar Deshmukh & Ashutosh Mohan & Ishi Mohan, 2022. "Goods and Services Tax (GST) Implementation in India: A SAP–LAP–Twitter Analytic Perspective," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(2), pages 165-183, June.
    2. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & Antonio José Orozco-Gallo, 2020. "Corporate taxes and firms' performance: A meta-frontier approach," Borradores de Economia 1116, Banco de la Republica de Colombia.
    3. Ján Dobroviè & Rastislav Rajnoha & Petr Šuleø, 2021. "Tax evasion in the EU countries following a predictive analysis and a forecast model for Slovakia," Oeconomia Copernicana, Institute of Economic Research, vol. 12(3), pages 701-728, September.
    4. Mzalendo, Ryoba & Chimilila, Cyril, 2020. "Tax administration, Taxpayer’s Reciprocity and Compliance in Tanzania: Empirical Evidence from a Survey," African Journal of Economic Review, African Journal of Economic Review, vol. 8(2), July.
    5. Serhan Cevik & Fedor Miryugin, 2018. "Does Taxation Stifle Corporate Investment? Firm‐Level Evidence from ASEAN Countries," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(3), pages 351-367, September.
    6. Ismail Kintu & Faisal Buyinza & Yusuf Kiwala, 2019. "Tax Administration and Entrepreneurial Performance: A Study of SMEs in Uganda," International Business Research, Canadian Center of Science and Education, vol. 12(12), pages 1-39, November.
    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.

    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:imf:imfwpa:2017/095. 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: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    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.