Competition and Tax Evasion: A Cross Country Study

Yiqun Wang

Economic Analysis and Policy, 2012, vol. 42, issue 2, 189-208

Abstract: This paper investigates the determinants of tax evasion, utilizing rich cross-country data of firm-level survey from the World Bank, and shows that competition is a key factor determining evasion activities; however its effect displays a decreasing trend. It is also shown that business obstacles facing firms such as tax administration and unfair practices play significant roles in explaining tax evasion. Firm characteristics such as size, age, ownership are also found important determinants. The empirical analysis controls for industry and country-level effects, for instance quality of the legal environment.

Keywords: tax evasion; competition; legal environment (search for similar items in EconPapers)
JEL-codes: H26 L25 O17 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:42:y:2012:i:2:p:189-208

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