Corruption, governance, and tax revenue: evidence from EAGLE countries

Arif, Imtiaz; Rawat, Amna Sohail

doi:10.1080/15475778.2018.1469912

Cited by 33 publications

(42 citation statements)

References 26 publications

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“…Control of corruption may reduce tax evasion, increase the tax morality of the society and facilitate the proper use of revenues in the productive activities and ultimately more revenue generation. Results are in line with Potanlar et al (2010) and Arif and Rawat (2018).…”

Section: Resultssupporting

confidence: 92%

“…Larger the size of the shadow economy, greater will be the opportunity to do corruption and thus corruption control will become a very difficult task for the government. Along with these variables, Arif and Rawat (2018) introduce governance as an explanatory variable in their model. They begin their study with the assumption that tax collection and tax efficiency levels mainly depend upon the corruption level in the economy.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Thus, BRICS is facing two major issues in tax revenue performance: first is the persistent corruption level, and second is the shadow economy. Empirically it has been proved that both are harmful to tax collection and growth performance (see, Arif & Rawat, 2018; Borlea, Achim, & Miron, 2017; Epaphra & Massawe, 2017).…”

Section: Introductionmentioning

confidence: 99%

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Shadow economy, corruption, and tax performance: A study of BRICS

Neog

Gaur

2020

Journal of Public Affairs

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In this paper, we analyse the effects of economic and political variables on tax revenue performance of BRICS for the period 1996–2017. After checking unit root and cointegration of the variables, this study employs fully modified ordinary least square (FMOLS) to investigate long‐run impacts of the explanatory variables. Empirical results suggest us that, economic development, trade openness and control of corruption are revenue‐enhancing factors for BRICS, whereas the agriculture sector discourages the tax revenue performance. However, the size of the shadow economy in BRICS undermines the productive implication of corruption control and economic development in revenue generation. Based on the results, few policy options are also discussed in this paper.

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Section: Resultssupporting

confidence: 92%

Section: Literature Reviewmentioning

confidence: 99%

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Shadow economy, corruption, and tax performance: A study of BRICS

Neog

Gaur

2020

Journal of Public Affairs

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“…Arif and Rawat [14] investigated the governance and tax revenue nexus in emerging economies. ey found that reducing corruption and improving governance helped enhance the tax revenue collection and suggested a monetary benefit to tax officers to reduce the corruption level.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Literature has corroborated that a higher level of governance and a lower level of corruption may improve the tax revenue collection [11][12][13][14][15][16][17]. On the other hand, Mallick [18] corroborated an insignificant relationship between governance and tax collection.…”

Section: Introductionmentioning

confidence: 98%

Governance: A Source to Increase Tax Revenue in Pakistan

et al. 2021

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Improved governance in any economy indicates government stability, secured law and order, and minimum internal and external conflicts. A higher level of governance may demonstrate the healthy performance of economic activities and tax revenue collection. Hence, it is vital to investigate the relationship between governance and tax revenue collection in any developing country. Therefore, we aim to investigate the impact of governance on tax revenue in Pakistan using control variables inflation and industrial value-added. The Autoregressive Distributive Lag (ARDL) cointegration technique is utilized to find the long- and short-run effects of hypothesized variables on the tax revenue using a period 1976–2019. After employing a cointegration on the hypothesized model, the results expose that government stability, law and order, and internal and external conflicts leave a positive and significant impact on tax revenue in the long and short run. Hence, it is concluded that governance is an essential source in expanding tax revenue in Pakistan. Moreover, industrial value-added and inflation also show positive effects on the tax revenue. On the grounds of these results, it is proposed that the government should make serious efforts to improve governance and industrial activities for better tax revenue collection.

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