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The role of digital government in reducing the shadow economy: an international empirical analysisRavšelj, Dejan ; Aristovnik, AleksanderThe shadow economy is a serious problem in many countries since it is considered as a recognised consequence of imperfections in the economic system and inadequacies in economic policies. Generally, ... the shadow economy includes any market-based activities that are intentionally hidden from public authorities to avoid payment of taxes and other obligations or to avoid meeting certain legal standards or conforming to certain administrative procedures. Consequently, it erodes the tax bases and reduces the tax revenue forcing the governments to find other sources of revenue to finance public spending. There exist several factors that generate and foster the growth of a shadow economy, whereby the most important are recognised in excessive tax burden, government overregulation and poor performance by government bodies. In this context, the implementation of digital government (e-government) is often emphasized as an instrument to reduce administrative burden costs, reduce tax evasion, and improve government effectiveness and efficiency. Accordingly, the main aim of the paper is to systematically examine the impact of digital government on reducing the shadow economy. The panel data analysis is based on a sample of about 150 countries around the world during the period 2005 - 2017, where the data on main variables of interest, i.e., estimated shadow economy and digital government development index are both available. The results show that digital government is a powerful instrument for reducing the shadow economy. The findings highlight the importance to achieve sufficient MACROECONOMICS 52 level of digital government development, especially in developing countries, where governments are still unable to fully benefit from information communication technology tools.Source: DIEM 2021 : 5th Dubrovnik International Economic Meeting : Global Challenges, Crisis Management and Sustainable Development : 2 - 3 July 2021, Dubrovnik, Croatia : book of abstracts (Str. 51-52)Type of material - conference contributionPublish date - 2021Language - englishCOBISS.SI-ID - 70132995
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http://www.diem-dubrovnik.com/diem/files/2021/Book_of_Abstracts_DIEM_2021.pdfprosto dostopno
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Ravšelj, Dejan | 38162 |
Aristovnik, Aleksander | 18942 |
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