Chan, Sok-Gee and Ramly, Zulkufly and Zulkhairi, Mustapha (2021) Value-added tax and economic efficiency: Role of country governance. Panoeconomicus, 68 (3). pp. 325-358. ISSN 1452-595X, DOI https://doi.org/10.2298/PAN180201020C.
Full text not available from this repository.Abstract
A Summary: 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.
| Item Type: | Article |
|---|---|
| Funders: | Ministry of Education, Malaysia (FP0342014B) |
| Uncontrolled Keywords: | Economic efficiency; Value-added tax; Country governance; Generalized method of moments; Data envelopment analysis |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance |
| Divisions: | Faculty of Arts and Social Sciences |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 17 Feb 2022 03:03 |
| Last Modified: | 17 Feb 2022 03:03 |
| URI: | http://eprints.um.edu.my/id/eprint/26186 |
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