Does inclusive financial development matter for firms' tax evasion? Evidence from developing countries

Ahamed, M Mostak (2016) Does inclusive financial development matter for firms' tax evasion? Evidence from developing countries. Economics Letters, 149. pp. 15-19. ISSN 0165-1765

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Abstract

We find that firms in developing countries with more inclusive financial sector evade taxes to a lesser extent. This effect is stronger for the countries with stronger legal rights and a smaller share of the informal economy. The results suggest that the growing public policy emphasis on achieving inclusive financial development may also help reduce tax evasion in developing countries.

Item Type: Article
Additional Information: Unmapped bibliographic data: DA - 2016/12/01/ [EPrints field already has value set] JO - Economics Letters [Field not mapped to EPrints]
Keywords: Financial inclusion, Financial outreach: corporate tax evasion, Informal economy, Institutional environment
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: H Social Sciences > HB Economic theory. Demography > HB0241 Production. Theory of the firm. Supply-side economics
H Social Sciences > HJ Public Finance > HJ2240 Revenue. Taxation. Internal revenue > HJ2321 Tax incidence. Tax shifting. Tax equity
Depositing User: M. Mostak Ahamed
Date Deposited: 04 Oct 2017 08:39
Last Modified: 04 Oct 2017 08:39
URI: http://sro.sussex.ac.uk/id/eprint/69906

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