The impact of the shadow economy on taxation in Cambodia

Mara Mong () and Siphat Lim ()

Edelweiss Applied Science and Technology, 2024, vol. 8, issue 6, 8718-8728

Abstract: A multiple regression analysis was conducted to assess the influence of the shadow economy, inflation rate, and GDP growth rate on tax revenue. The regression model utilized level data, and the two-step Engle and Granger cointegration test confirmed the absence of spurious relationships between the dependent and independent variables. Various diagnostic tests associated with OLS methods were performed, including assessments for multicollinearity, heteroscedasticity, and serial autocorrelation. To ensure the robustness of the standard errors, the HAC standard errors and covariance were applied. The empirical findings of this research demonstrated that the growth of the shadow economy has a statistically significant negative impact on tax revenue in Cambodia. Furthermore, the results indicated a negative relationship between inflation and tax revenue, while a positive correlation was found between real GDP growth and tax revenue.

Keywords: GDP; Inflation rate; OLS method; Shadow economy; Tax revenue. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://learning-gate.com/index.php/2576-8484/article/view/3863/1464 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ajp:edwast:v:8:y:2024:i:6:p:8718-8728:id:3863

Access Statistics for this article

More articles in Edelweiss Applied Science and Technology from Learning Gate
Bibliographic data for series maintained by Melissa Fernandes ().