TY - JOUR
T1 - Financial development and tax evasion: International evidence from OECD and non-OECD countries
AU - Allam, Amir
AU - Abou-El-Sood , Heba
AU - Elmarzouky, Mahmoud
AU - Yamen, Ahmed
N1 - Copyright © 2024 The Author(s). Published by Elsevier Inc. This work is licensed under a Creative Commons Attribution 4.0 International License (https://creativecommons.org/licenses/by/4.0/).
PY - 2024/10/4
Y1 - 2024/10/4
N2 - This study investigates the nexus between financial development and tax evasion across 156 countries from 2000 to 2017. In contrast to previous research focusing solely on banks or financial markets’ development, we employ a more comprehensive financial development index introduced by the International Monetary Fund (IMF) in 2016. This index gauges the progress of financial institutions (FI) and financial markets (FM) in terms of depth, access, and efficiency. Our findings underscore a negative correlation between financial development and tax evasion. Enhanced depth, access, and efficiency in both FI and FM correspond to reduced levels of tax evasion. Nevertheless, disparities emerge between the Organization of Economic Cooperation and Development (OECD) and non-OECD countries. While non-OECD countries exhibit negative associations between FI and FM development and tax evasion, in OECD countries, the role of FI assumes greater significance in curtailing tax evasion. Notably, within OECD countries, the depth
AB - This study investigates the nexus between financial development and tax evasion across 156 countries from 2000 to 2017. In contrast to previous research focusing solely on banks or financial markets’ development, we employ a more comprehensive financial development index introduced by the International Monetary Fund (IMF) in 2016. This index gauges the progress of financial institutions (FI) and financial markets (FM) in terms of depth, access, and efficiency. Our findings underscore a negative correlation between financial development and tax evasion. Enhanced depth, access, and efficiency in both FI and FM correspond to reduced levels of tax evasion. Nevertheless, disparities emerge between the Organization of Economic Cooperation and Development (OECD) and non-OECD countries. While non-OECD countries exhibit negative associations between FI and FM development and tax evasion, in OECD countries, the role of FI assumes greater significance in curtailing tax evasion. Notably, within OECD countries, the depth
KW - financial development
KW - tax evasion
KW - financial institutions
KW - financial markets
KW - OECD
UR - https://www.sciencedirect.com/science/article/pii/S1061951824000594
UR - http://www.scopus.com/inward/record.url?scp=85198556423&partnerID=8YFLogxK
U2 - 10.1016/j.intaccaudtax.2024.100653
DO - 10.1016/j.intaccaudtax.2024.100653
M3 - Article
SN - 1061-9518
VL - 57
JO - Journal of International Accounting, Auditing and Taxation
JF - Journal of International Accounting, Auditing and Taxation
M1 - 100653
ER -