The Effect of Financial Development on Tax Evasion in Iran
Tax evasion constitutes a major component of underground activities and development of financial sector -as one of the most important sectors in every country can affect its size. Considering the importance of this issue, this study tries to investigate the relationship between financial development...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2019-09-01
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| Series: | فصلنامه پژوهشهای اقتصادی ایران |
| Subjects: | |
| Online Access: | https://ijer.atu.ac.ir/article_11114_f3ee0689d9f0feb526479efb70a88750.pdf |
| _version_ | 1797369302373892096 |
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| author | Mahdieh Rezagholizadeh Amirhossein Alami |
| author_facet | Mahdieh Rezagholizadeh Amirhossein Alami |
| author_sort | Mahdieh Rezagholizadeh |
| collection | DOAJ |
| description | Tax evasion constitutes a major component of underground activities and development of financial sector -as one of the most important sectors in every country can affect its size. Considering the importance of this issue, this study tries to investigate the relationship between financial development and tax evasion and provide an answer to this question: can financial development in Iran reduce tax evasion? This study estimates the volume of tax evasion in Iran by using multiple-indicators -multiple causes (MIMIC) model and maximum likelihood method in AMOS software, for the period of 1978-2016. Then the effect of financial development on tax evasion is investigated by using ARDL Bounds test method. The results show that despite some fluctuations, volume of tax evasion has been generally increasing over the underlying period. The results of the estimation of the effect of financial development on the tax evasion indicate that financial development in Iran in long-run and short-run (with one lag) has a negative and significant impact on the tax evasion. Also, findings show that an increase in inflation, increases tax evasion and increase in GDP reduces tax evasion. |
| first_indexed | 2024-03-08T17:44:45Z |
| format | Article |
| id | doaj.art-43385441cbdf46e1a8b39b6d041c1754 |
| institution | Directory Open Access Journal |
| issn | 1726-0728 2476-6445 |
| language | fas |
| last_indexed | 2024-03-08T17:44:45Z |
| publishDate | 2019-09-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | فصلنامه پژوهشهای اقتصادی ایران |
| spelling | doaj.art-43385441cbdf46e1a8b39b6d041c17542024-01-02T10:29:35ZfasAllameh Tabataba'i University Pressفصلنامه پژوهشهای اقتصادی ایران1726-07282476-64452019-09-01248010515010.22054/ijer.2019.1111411114The Effect of Financial Development on Tax Evasion in IranMahdieh Rezagholizadeh0Amirhossein Alami1Assistant Professor in Economics, University of Mazandaran, Mazandaran, Iran.M.A., University of Mazandaran, Mazandaran, IranTax evasion constitutes a major component of underground activities and development of financial sector -as one of the most important sectors in every country can affect its size. Considering the importance of this issue, this study tries to investigate the relationship between financial development and tax evasion and provide an answer to this question: can financial development in Iran reduce tax evasion? This study estimates the volume of tax evasion in Iran by using multiple-indicators -multiple causes (MIMIC) model and maximum likelihood method in AMOS software, for the period of 1978-2016. Then the effect of financial development on tax evasion is investigated by using ARDL Bounds test method. The results show that despite some fluctuations, volume of tax evasion has been generally increasing over the underlying period. The results of the estimation of the effect of financial development on the tax evasion indicate that financial development in Iran in long-run and short-run (with one lag) has a negative and significant impact on the tax evasion. Also, findings show that an increase in inflation, increases tax evasion and increase in GDP reduces tax evasion.https://ijer.atu.ac.ir/article_11114_f3ee0689d9f0feb526479efb70a88750.pdffinancial developmenttax evasioniranmultiple indicators - multiple causes (mimic)ardl bounding test |
| spellingShingle | Mahdieh Rezagholizadeh Amirhossein Alami The Effect of Financial Development on Tax Evasion in Iran فصلنامه پژوهشهای اقتصادی ایران financial development tax evasion iran multiple indicators - multiple causes (mimic) ardl bounding test |
| title | The Effect of Financial Development
on Tax Evasion in Iran |
| title_full | The Effect of Financial Development
on Tax Evasion in Iran |
| title_fullStr | The Effect of Financial Development
on Tax Evasion in Iran |
| title_full_unstemmed | The Effect of Financial Development
on Tax Evasion in Iran |
| title_short | The Effect of Financial Development
on Tax Evasion in Iran |
| title_sort | effect of financial development on tax evasion in iran |
| topic | financial development tax evasion iran multiple indicators - multiple causes (mimic) ardl bounding test |
| url | https://ijer.atu.ac.ir/article_11114_f3ee0689d9f0feb526479efb70a88750.pdf |
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