Value-added tax and economic efficiency: role of country governance

Value-added tax and economic efficiency: role of country governance

This paper examines the impact of VAT on economic efficiency, which while regarded as distortionary remains inevitable for economic development. Using data from 115 countries from 1984 to 2014, this research further investigates the moderating role of country governance on the link between VAT and e...

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Main Authors: Chan, Sok Gee, Ramly, Zulkufly, Mustapha, Mohd Zulkhairi
Format: Article
Language:English
Published: panaeconomicus 2018
Subjects:
HJ2240 Revenue. Taxation
Online Access:http://irep.iium.edu.my/66639/
http://irep.iium.edu.my/66639/
http://irep.iium.edu.my/66639/
http://irep.iium.edu.my/66639/1/66639_Value-Added%20Tax%20and%20Economic-online%20first.pdf
id iium-66639
recordtype eprints
spelling iium-666392018-10-16T01:41:10Z http://irep.iium.edu.my/66639/ Value-added tax and economic efficiency: role of country governance Chan, Sok Gee Ramly, Zulkufly Mustapha, Mohd Zulkhairi HJ2240 Revenue. Taxation This paper examines the impact of VAT on economic efficiency, which while regarded as distortionary remains inevitable for economic development. Using data from 115 countries from 1984 to 2014, this research further investigates the moderating role of country governance on the link between VAT and economic efficiency. The results suggest that the extent to which country governance mitigates the effect of VAT on economic efficiency is contingent upon the way the country groups prioritize the development of each institutional factor. We find that high corporate tax countries benefit more from higher quality country governance. These findings confirm the role of country governance in better enforcement of tax policy to create less detrimental effects for economic growth. Therefore, better country governance makes taxation more affordable in high corporate tax countries. panaeconomicus 2018-09-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/66639/1/66639_Value-Added%20Tax%20and%20Economic-online%20first.pdf Chan, Sok Gee and Ramly, Zulkufly and Mustapha, Mohd Zulkhairi (2018) Value-added tax and economic efficiency: role of country governance. Panoeconomicus, forthcoming. pp. 1-37. ISSN 1452-595X E-ISSN 2217-2386 https://panoeconomicus.org/index.php/jorunal/article/view/597 10.2298/PAN180201020C
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HJ2240 Revenue. Taxation
spellingShingle HJ2240 Revenue. Taxation
Chan, Sok Gee
Ramly, Zulkufly
Mustapha, Mohd Zulkhairi
Value-added tax and economic efficiency: role of country governance
description This paper examines the impact of VAT on economic efficiency, which while regarded as distortionary remains inevitable for economic development. Using data from 115 countries from 1984 to 2014, this research further investigates the moderating role of country governance on the link between VAT and economic efficiency. The results suggest that the extent to which country governance mitigates the effect of VAT on economic efficiency is contingent upon the way the country groups prioritize the development of each institutional factor. We find that high corporate tax countries benefit more from higher quality country governance. These findings confirm the role of country governance in better enforcement of tax policy to create less detrimental effects for economic growth. Therefore, better country governance makes taxation more affordable in high corporate tax countries.
format Article
author Chan, Sok Gee
Ramly, Zulkufly
Mustapha, Mohd Zulkhairi
author_facet Chan, Sok Gee
Ramly, Zulkufly
Mustapha, Mohd Zulkhairi
author_sort Chan, Sok Gee
title Value-added tax and economic efficiency: role of country governance
title_short Value-added tax and economic efficiency: role of country governance
title_full Value-added tax and economic efficiency: role of country governance
title_fullStr Value-added tax and economic efficiency: role of country governance
title_full_unstemmed Value-added tax and economic efficiency: role of country governance
title_sort value-added tax and economic efficiency: role of country governance
publisher panaeconomicus
publishDate 2018
url http://irep.iium.edu.my/66639/
http://irep.iium.edu.my/66639/
http://irep.iium.edu.my/66639/
http://irep.iium.edu.my/66639/1/66639_Value-Added%20Tax%20and%20Economic-online%20first.pdf
first_indexed 2023-09-18T21:34:38Z
last_indexed 2023-09-18T21:34:38Z
_version_ 1777412738994143232

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