EconPapers    
Economics at your fingertips  
 

Financial Inclusion and Tax Revenue: Evidence From Europe

Bassam Al-Own and Tareq Bani-Khalid

International Journal of Financial Research, 2021, vol. 12, issue 2, 27-42

Abstract: This paper aimed to investigate the relationship between financial inclusion and tax revenue using measures from the Global Findex database for a sample of 28 European countries between 2011- 2017. The data were analysed using panel data methodology. The number of people who are financially included in this observed period might increase over time, which would create more income and in turn lead to higher tax contributions to the government. We found strong evidence to suggest that financial inclusion represents one of the determinants of tax revenue in European countries. Results of the analysis show positive and significant impact of financial inclusion as measured by Bank account (% of age +15) and credit card ownership (% age 15+) on tax revenues measures. The results are robust using several sources of taxation. The findings suggest that higher financial inclusion is associated with more tax revenue. These results should be of great interest to regulators and policymakers to take advantage of the developments on financial inclusion.

Keywords: financial inclusion; tax revenue; bank account; credit card; policymakers; financial system; panel data; taxation (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/18876/12187 (application/pdf)
http://www.sciedu.ca/journal/index.php/ijfr/article/view/18876 (text/html)

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:jfr:ijfr11:v:12:y:2021:i:2:p:27-42

DOI: 10.5430/ijfr.v12n2p27

Access Statistics for this article

International Journal of Financial Research is currently edited by Gina Perry

More articles in International Journal of Financial Research from International Journal of Financial Research, Sciedu Press
Bibliographic data for series maintained by Gina Perry ().

 
Page updated 2022-01-01
Handle: RePEc:jfr:ijfr11:v:12:y:2021:i:2:p:27-42