Does economic development mitigate tax evasion? evidence from evasional Kuznets curve
The purpose of this study is to estimate the size of the shadow economy in Malaysia for the period 1983 to 2013 using the currency demand approach (CDA). We employ the nonlinear autoregressive distributed lag (NARDL) modeling approach and calculate the loss in tax revenue (tax evasion) as a result o...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics and Management, Universiti Putra Malaysia
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/16081/ http://psasir.upm.edu.my/id/eprint/16081/1/1%29%20Does%20Economic%20Development%20Mitigate%20Tax%20Evasion.pdf |
| _version_ | 1848842860589219840 |
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| author | Tan, Yan Ling Habibullah, Muzafar Shah Din, Badariah Kaliappan, Shivee Ranjanee |
| author_facet | Tan, Yan Ling Habibullah, Muzafar Shah Din, Badariah Kaliappan, Shivee Ranjanee |
| author_sort | Tan, Yan Ling |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The purpose of this study is to estimate the size of the shadow economy in Malaysia for the period 1983 to 2013 using the currency demand approach (CDA). We employ the nonlinear autoregressive distributed lag (NARDL) modeling approach and calculate the loss in tax revenue (tax evasion) as a result of the presence of the shadow economy. We analyse factors determining tax evasion in Malaysia and our results suggest that tax evasion exhibit an inverted-U shape curve (nonlinear) with the level of economic development and positive relationship with various measures of tax burden in Malaysia during the period under study. We conclude that increasing the level of economic development and reducing the various tax rates will able to reduce tax evasion in Malaysia. |
| first_indexed | 2025-11-15T08:05:51Z |
| format | Article |
| id | upm-16081 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:05:51Z |
| publishDate | 2018 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-160812019-11-12T06:44:55Z http://psasir.upm.edu.my/id/eprint/16081/ Does economic development mitigate tax evasion? evidence from evasional Kuznets curve Tan, Yan Ling Habibullah, Muzafar Shah Din, Badariah Kaliappan, Shivee Ranjanee The purpose of this study is to estimate the size of the shadow economy in Malaysia for the period 1983 to 2013 using the currency demand approach (CDA). We employ the nonlinear autoregressive distributed lag (NARDL) modeling approach and calculate the loss in tax revenue (tax evasion) as a result of the presence of the shadow economy. We analyse factors determining tax evasion in Malaysia and our results suggest that tax evasion exhibit an inverted-U shape curve (nonlinear) with the level of economic development and positive relationship with various measures of tax burden in Malaysia during the period under study. We conclude that increasing the level of economic development and reducing the various tax rates will able to reduce tax evasion in Malaysia. Faculty of Economics and Management, Universiti Putra Malaysia 2018 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/16081/1/1%29%20Does%20Economic%20Development%20Mitigate%20Tax%20Evasion.pdf Tan, Yan Ling and Habibullah, Muzafar Shah and Din, Badariah and Kaliappan, Shivee Ranjanee (2018) Does economic development mitigate tax evasion? evidence from evasional Kuznets curve. International Journal of Economics and Management, 12 (S2). pp. 313-325. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol12_noS2/1)%20Does%20Economic%20Development%20Mitigate%20Tax%20Evasion.pdf |
| spellingShingle | Tan, Yan Ling Habibullah, Muzafar Shah Din, Badariah Kaliappan, Shivee Ranjanee Does economic development mitigate tax evasion? evidence from evasional Kuznets curve |
| title | Does economic development mitigate tax evasion? evidence from evasional Kuznets curve |
| title_full | Does economic development mitigate tax evasion? evidence from evasional Kuznets curve |
| title_fullStr | Does economic development mitigate tax evasion? evidence from evasional Kuznets curve |
| title_full_unstemmed | Does economic development mitigate tax evasion? evidence from evasional Kuznets curve |
| title_short | Does economic development mitigate tax evasion? evidence from evasional Kuznets curve |
| title_sort | does economic development mitigate tax evasion? evidence from evasional kuznets curve |
| url | http://psasir.upm.edu.my/id/eprint/16081/ http://psasir.upm.edu.my/id/eprint/16081/ http://psasir.upm.edu.my/id/eprint/16081/1/1%29%20Does%20Economic%20Development%20Mitigate%20Tax%20Evasion.pdf |