Informal economies, state finances and surveyors

Molen, P. van der

doi:10.1080/00396265.2016.1216922

Cited by 6 publications

(2 citation statements)

References 15 publications

(16 reference statements)

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“…Tax evasion because of informal economies is acute. It amounts up to US$ 3.1 trillion annually, about 5% of the world's GDP (Molen, 2018). The existing literature on the link between tax and informality has shown compelling evidence on the harmful effects of a growing informal sector, especially in developing countries, which together lose an estimated US$285 billion annually to tax evasion (Torgler and Schneider, 2009).…”

Section: Literature Reviewmentioning

confidence: 99%

The Nexus Between Taxation and Gender-Based Informality: Evidence from Nigerian Enterprise Survey Data

DIDIA,

HASNAT,

SANDA

et al. 2022

JAES

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Using the Nigerian enterprise survey data, this paper examines whether there is a gender dimension in the capacity of informal firms to contribute to tax revenues, a more specific question asked is whether tax rates and female gender ownership effects informality. Gender categorization of the firm’s ownership shows an overwhelming dominance of men holding over women, with a favorable ratio of 6:1 of the total sample. The results of the investigation on firms owned by females revealed that they are more likely to remain in the informal sector. By using the cross-sectional logit regression approach, we found no statistical significance between tax rates and a firm’s propensity to join the informal sector. It explains a typical scenario where the tax rates mechanism has failed to transmit effectively. Finally, we attained a divergent policy indication that suggests tax compliance enforcement and incentivizing female firms’ owners, among other measures. 

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Section: Literature Reviewmentioning

confidence: 99%

The Nexus Between Taxation and Gender-Based Informality: Evidence from Nigerian Enterprise Survey Data

DIDIA,

HASNAT,

SANDA

et al. 2022

JAES

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“…The invisible nature of the IS, the hidden activities, the unavailability of complete, reliable and accurate statistics on the sector casts doubt on some governance and policy decisions (Van der Molen, 2018;Sutcliffe & Court, 2005. Policymaking and implementation must be guided by evidence and adequate information. Affirming the challenges of the sector's unrecorded, unmeasured and unaccounted for activities, Kristoffersen (2011) asseverates that the IS diminishes the integrity of national statistics and brings forward challenges for tax policy crafting decisions as statistics from the sector are often misleading and unreliable in relation labor, incomes, employment, economic growth, output and potential tax revenues.…”

Section: Hampers Supply Of Reliable Information and National Statisticsmentioning

confidence: 99%

An Evil to be Extinguished or a Resource to be harnessed-Informal Sector in Developing Countries: A Case of Zimbabwe

Mpofu¹,

Moyo²

2021

JEBS

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The informal sector remains a permanent feature of all economies. It is a more pronounced component of developing country economies where it is an integral part. Literature on economic development offers diverging viewpoints on the sector’s contribution to economic growth. On the one hand, researchers view the sector with positivity as a resource to be harnessed, capable of growth and innovation and on the other hand with negativity as a pure survivalist strategy and a stumbling block to effective policy formulation and economic development. Therefore as an inconvenience to be extinguished. The ambivalent view is further compounded by the sector’s paltry contribution to national tax revenues and as such, the IS has remained unappreciated and largely on the peripheral of economic reviews and policy responsiveness. The former view suggests that the latter is a misconception and narrow recognition of the sector as merely survivalist and contributing negligibly to employment creation and poverty alleviation efforts. Failure to recognize a coexistence of both street traders and firms with potential for growth, improved productivity and innovation, has consequently resulted in misguided policies. Policymakers pay little or no attention to the potential of informal sector firms, the challenges they face, the vulnerability they are exposed to and the appropriate support they require. This gap motivates this paper, as it seeks to explore the role played by the IS in developing countries with a special focus on Zimbabwe. The study employs a mixed-method research design. The research established that the sector remains unequivocally a major source of employment for many developing countries. It also established that a single-minded focus on formalizing the sector, linked to registration for tax purposes, ignores the other arm to the equation that is the creation of job opportunities, hospitable working conditions, improved productivity and increased profits which are possible with adequate policy support. The research recommends improved policy research and support which is development focused to aid informal firms to grow and be independent institutionally and financially from their owners as well as skills capacitation to improve operational and financial management.

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Developing a sustainability strategy for multipurpose cadastre in post-conflict Syria

Habib

2020

Land Use Policy

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Informal economies, state finances and surveyors

Cited by 6 publications

References 15 publications

The Nexus Between Taxation and Gender-Based Informality: Evidence from Nigerian Enterprise Survey Data

The Nexus Between Taxation and Gender-Based Informality: Evidence from Nigerian Enterprise Survey Data

An Evil to be Extinguished or a Resource to be harnessed-Informal Sector in Developing Countries: A Case of Zimbabwe

Developing a sustainability strategy for multipurpose cadastre in post-conflict Syria

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