The Impact of Tax Gap on Macroeconomic Stability: Assessment Using Panel VEC Approach

• Autorzy: Oleksii Lyulyov , Serhiy Lyeonov , Inna Tiutiunyk , Joanna Podgórska
• Języki publikacji: EN

Abstrakty

EN

Imperfect tax legislation, high levels of corruption, and shadow economy lead to the deterioration of macroeconomic situation and economic imbalances in the countries. The state's actual tax revenues' inconsistency to its potential opportunities becomes the most acute problem for many countries. These processes cause a reduction in budget revenues due to the formation of tax gaps. The research aims to establish the causal links between tax gaps in the main types of taxes and the macroeconomic stability level. A comparative analysis of the theoretical basis for assessing the macroeconomic stability shows that to the greatest extent the requirement to ensure the reliable comparisons of different countries and achieve the main goals of a stabilization policy is possible using the concept of the macroeconomic stability pentagon. The article considers the basic version of this concept (developed by G. Kolodko) and its modifications. The authors have found that taxpayers often resort to various understatement schemes of their VAT and customs duties out of all indirect taxes. The volume of tax gaps for value added tax is calculated in the research. An empirical study on the causal relationships of tax gaps on value added tax and macroeconomic stability is carried out in the following logical sequence: determining the order of series integration using single root tests (ADF, IPS, LLC); evaluation of series cointegration by means of panel tests (Pedroni and Kao), determination of the strength and direction of the causal relationship between the series based on a dynamic approach (VEC model). The findings on the volume of tax gaps by major types of taxes and their causal links with the macroeconomic stability level may become targets for the organization's legal regulation over paying taxes to the state budget. (original abstract)

Słowa kluczowe

EN

National economy; Theory of macroeconomics; Stabilisation policy; Tax gap

PL

Gospodarka narodowa; Teoria makroekonomii; Polityka stabilizacyjna; Luka podatkowa

• Czasopismo: Journal of International Studies
• Rocznik: 2021
• Tom: 14
• Numer: nr 1
• Strony: 139--152

Twórcy

autor

Oleksii Lyulyov

• Sumy State University, Ukraine

autor

Serhiy Lyeonov

• Sumy State University, Ukraine

autor

Inna Tiutiunyk

• Sumy State University, Ukraine

autor

Joanna Podgórska

• University of Information Technology and Management, Poland

Bibliografia

• Al Quraan, A. R. (2020). General sales tax and economic growth in small open developing countries: Evidence from jordan. Montenegrin Journal of Economics, 16(3), 7-15. doi:10.14254/1800-5845/2020.16-3.1
• Androniceanu, A., Gherghina, R., & Ciobănașu, M. (2019). The interdependence between fiscal public policies and tax evasion. Administratie Si Management Public, 2019(32), 32-41. doi:10.24818/amp/2019.32-03
• Biegun, K., & Karwowski, J. (2020). Macroeconomic imbalance procedure (MIP) scoreboard indicators and their predictive strength of?multidimensional crises?. Equilibrium. Quarterly Journal of Economics and Economic Policy, 15(1), 11-28. https://doi.org/10.24136/eq.2020.001
• Bilan, Y., Tiutiunyk, I., Lyeonov, S., & Vasylieva, T. (2020). Shadow economy and economic development: A panel cointegration and causality analysis. International Journal of Economic Policy in Emerging Economies, 13(2), 173-193. doi:10.1504/IJEPEE.2020.107929
• Bilan, Y., Vasylieva, T., Lyeonov, S., & Tiutiunyk, I. (2019). Shadow economy and its impact on demand at the investment market of the country. Entrepreneurial Business and Economics Review, 7(2), 27-43. doi:10.15678/EBER.2019.070202
• Boiko, A., Samusevych, I. (2017). The role of tax competition between the countries of the world and the features of determining the main tax competitors of Ukraine among the European countries. Financial Markets, Institutions and Risks, 1(1), 72-79. http://doi.org/10.21272/fmir.1(1).72-79.2017
• Bondarenko, A. F., Zakharkina, L. S., Syhyda, L. O., & Saher, L. Y. (2020). The economic and marketing attractiveness of countries: Measurement and positioning in terms of economic security. International Journal of Sustainable Development and Planning, 15(4), 439-449. doi:10.18280/ijsdp.150404
• Christopoulos, D. K. (2003). Does underground economy respond symmetrically to tax changes? Evidence from Greece. Economic Modelling, 20(3), 563-570.
• Chygryn, O., Petrushenko, Y., Vysochyna, A., & Vorontsova, A. (2018). Assessment of fiscal decentralization influence on social and economic development. Montenegrin Journal of Economics, 14(4), 69-84. doi:10.14254/1800-5845/2018.14-4.5
• Dankiewicz, R., & Simionescu, M. (2020). The insurance market in romania: A macroeconomic and a microeconomic approach. [Draudimo rinka Rumunijoje: Makroekonominis ir mikroekonominis metodai] Transformations in Business and Economics, 19(1), 248-261
• Dharmapala, D. (2008). What problems and opportunities are created by tax havens?. Oxford Review of Economic Policy, 24(4), 661-679.
• Djalilov, K., Lyeonov, S., & Buriak, A. (2015). Comparative studies of risk, concentration and efficiency in transition economies. Risk Governance and Control: Financial Markets and Institutions, 5(4CONT1), 178-187. doi:10.22495/rgcv5i4c1art7
• Dkhili, H. (2018). Environmental performance and institutions quality: evidence from developed and developing countries. Marketing and Management of Innovations, (3), 333-344. http://doi.org/10.21272/mmi.2018.3-30
• Hadri, K. (2000). Testing for stationarity in heterogeneous panel data. The Econometrics Journal, 3(2), 148-161.
• Haller, A. (2020). From classical and neoclassical economic growth to degrowth in europe. Challenges for public administration. Administratie Si Management Public, 2020(34), 150-170. doi:10.24818/amp/2020.34-9
• Hanić, A., & Jevtić, D. (2020). Human resource management between economy and ethics - research of Serbia and Bosnia and Hercegovina. Business Ethics and Leadership, 4(3), 127-136. https://doi.org/10.21272/bel.4(3).127-136.2020
• Harremi, M. (2014). A simple analysis of the tax gap Balkan region. Mediterranean Journal of Social Sciences, 5(19), 365.
• Harust, Yu., & Melnyk, V. (2019). Economic security of the country: marketing, institutional and political determinants. Marketing and Management of Innovations, 4, 373-382. http://doi.org/10.21272/mmi.2019.4-29
• Herkenrath, M. (2014). Tax Havens and Capital Flight from Developing Countries: The Social and Political Implications. Revue d'economie du developpement, 22(HS02), 131-136.
• Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of econometrics, 115(1), 53-74.
• Junior, C. J. C., Garcia-Cintado, A. C., & Usabiaga, C. (n.d.). Fiscal adjustments and the shadow economy in an emerging market. Macroeconomic Dynamics, 1-35.
• Kao, C. (1999). Spurious regression and residual-based tests for cointegration in panel data. Journal of Econometrics, 90(1), 1-44. doi:10.1016/S0304-4076(98)00023-2
• Kasztelnik, K. (2020). Causal-Comparative macroeconomic behavioral study: international corporate financial transfer pricing in the United States. Financial Markets, Institutions and Risks, 4(1), 60-75. http://doi.org/10.21272/fmir.4(1).60-75.2020.
• Kharazishvili, Y., Kwilinski, A., Grishnova, O., & Dzwigol, H. (2020). Social safety of society for developing countries to meet sustainable development standards: indicators, level, strategic benchmarks (with calculations based on the case study of Ukraine). Sustainability, 12(21), 8953. https://doi.org/10.3390/su12218953
• Kolodko, G. W. (1993). Stabilization, recession and growth in a postsocialist economy. MOST: Most: Economic Journalon Eastern Europe and the Soviet Union, 3(1), 3-38.
• Kološta, S., Kráľ, P., & Flaška, F. (2019). Alternative measures of macroeconomic imbalances in the EU - design and verification. E a M: Ekonomie a Management, 22(1), 36-53. doi:10.15240/tul/001/2019-1-003
• Kuek, T.-H., Puah, C.-H., Arip, M. A., & Habibullah, M. S. (2021). Macroeconomic perspective on constructing financial vulnerability indicator in China. Journal of Business Economics and Management, 22(1), 181-196. https://doi.org/10.3846/jbem.2020.13220
• Levchenko, V., Boyko, A., Bozhenko, V., & Mynenko, S. (2019). Money laundering risk in developing and transitive economies: Analysis of cyclic component of time series. Business: Theory and Practice, 20, 492-508. doi:10.3846/btp.2019.46
• Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: asymptotic and finite-sample properties. Journal of econometrics, 108(1), 1-24.
• Lyulyov, O., Pimonenko, T., Stoyanets, N., & Letunovska, N. (2019). Sustainable development of agricultural sector: Democratic profile impact among developing countries. Research in World Economy, 10(4), 97-105. doi:10.5430/rwe.v10n4p9
• Lyulyuv, O., & Shvindina, H. (2017). Stabilization pentagon model: application in the management at macro-and micro-levels. Problems and Perspectives in Management, 15(3), 42-52.
• Melnyk, L., Sineviciene, L., Lyulyov, O., Pimonenko, T., & Dehtyarova, I. (2018). Fiscal decentralization and macroeconomic stability: The experience of ukraine's economy. Problems and Perspectives in Management, 16(1), 105-114. doi:10.21511/ppm.16(1).2018.1
• Mishchuk, H., Bilan, S., Yurchyk, H., Akimova, L., & Navickas, M. (2020). Impact of the shadow economy on social safety: The experience of Ukraine. Economics and Sociology, 13(2), 289-303. doi:10.14254/2071-789X.2020/13-2/19
• Miskiewicz, R. (2018). The importance of knowledge transfer on the energy market. Polityka Energetyczna, 21(2), 49-62. http://dx.doi.org/10.24425/122774
• Murphy, R., & Guter-Sandu, A. (2018). Resources allocated to tackling the tax gap: a comparative EU study. Working paper for Combating Financial Fraud and Empowering Regulators (COFFERS) Horizon 2020 project, (A).
• Nelson, E. M. (2017). Socioeconomic challenges - a global perspective evaluating invisible connections-resolutioning necessary global collaborative. SocioEconomic Challenges, 1(3), 116-119. doi:10.21272/sec.1(3).116-119.2017
• Nguyen, T. A. N., & Luong, T. T. H. (2020). Corruption, shadow economy and economic growth: Evidence from emerging and developing asian economies. Montenegrin Journal of Economics, 16(4), 85-94. doi:10.14254/1800-5845/2020.16-4.7
• Ostrowska-Dankiewicz, A., & Simionescu, M. (2020). Relationship between the insurance market and macroeconomic indicators in the EU member states. [Draudimo rinkos ir makroekonominių rodiklių ryšys es valstybėse narėse] Transformations in Business and Economics, 19(3), 175-187.
• Petroye, O., Lyulyov, O., Lytvynchuk, I., Paida, Y., & Pakhomov, V. (2020). Effects of information security and innovations on Country's image: Governance aspect. International Journal of Safety and Security Engineering, 10(4), 459-466. doi:10.18280/ijsse.100404
• Pimonenko, T., Us, Y., Lyulyova, L., & Kotenko, N. (2021). The impact of the macroeconomic stability on the energy********efficiency of the european countries: A bibliometric analysis. Paper presented at the E3S Web of Conferences, 234doi:10.1051/e3sconf/202123400013
• Pisár, P., Ďurčeková, I., & Stachová, M. (2020). The contribution of innovation actors into business r&d funding - does the substitution effect of public support work in the EU?. E a M: Ekonomie a Management, 23(1), 121-134. doi:10.15240/tul/001/2020-1-009
• Povolná L., & Švarcová J. (2017). The Macroeconomic context of investments in the field of machine tools in the Czech Republic. Journal of Competitiveness, 9(2), 110-122 https://doi.org/10.7441/joc.2017.02.08
• Remeikienė, R., Gasparėnienė, L., & Sadeckas, A. (2019). The determinants of the competitiveness of Lithuanian export: macroeconomic approach. Business: Theory and Practice, 20, 170-178. https://doi.org/10.3846/btp.2019.16
• Roszko-Wójtowicz, E., & Grzelak, M. M. (2020). Macroeconomic stability and the level of competitiveness in EU member states: A comparative dynamic approach. Oeconomia Copernicana, 11(4), 657-688. doi:10.24136/OC.2020.027
• Rutkauskas, A. V., & Stasytytė, V. (2020). Stochastic informative expert system for investment. Journal of Business Economics and Management, 21(1), 136-156. https://doi.org/10.3846/jbem.2020.11768
• Sanusi, K. A., Meyer, D., & Ślusarczyk, B. (2017). The relationship between changes in inflation and financial development. [Związek między zmianami w inflacji a rozwojem finansowym]. Polish Journal of Management Studies, 16(2), 253-265. doi:10.17512/pjms.2017.16.2.22
• Shkolnyk, I., Kozmenko, O., Nowacki, R., & Mershchii, B. (2020). Dependence of the state of public finances on their transparency and the level of corruption in a country. Economics and Sociology, 13(4), 281-296. doi:10.14254/2071-789X.2020/13-4/18
• Shymon, S., Kolomiets-Ludwig, E., Osiejewicz, Jo., Krawczyk, D., & Kaminska, B. (2020). The Role of Country Brand in Providing Economic Resilience. Marketing and Management of Innovations, 1, 303-311. http://doi.org/10.21272/mmi.2020.1-26
• Skare, M., & Cvek, D. (2020). A vector autoregression analysis of foreign direct investment and its link to competitiveness. Journal of Competitiveness, 12(4), 127-142. https://doi.org/10.7441/joc.2020.04.08
• Škare, M., Franc-Dąbrowska, J., & Cvek, D. (2020a). Cointegration analysis and VECM of FDI, employment, export and GDP in Croatia (2002?2017) with particular reference to the global crisis and poor macroeconomic governance. Equilibrium. Quarterly Journal of Economics and Economic Policy, 15(4), 761-783. https://doi.org/10.24136/eq.2020.033
• Škare, M., Radošević, D., & Radolović, S. (2020b). Measuring the macroeconomic impact of economic diplomacy using varfima model for croatia 1990-2018. Economics and Sociology, 13(3), 230-243. doi:10.14254/2071-789X.2020/13-3/14
• Sokolovska, A., Zatonatska, T., Stavytskyy, A., Lyulyov, O., & Giedraitis, V. (2020). The impact of globalization and international tax competition on tax policies. Research in World Economy, 11(4), 1-15. doi:10.5430/rwe.v11n4p1
• Stankevičius, E., & Vasiliauskaitė, A. (2014). Tax burden level leverage on size of the shadow economy, cases of EU countries 2003-2013. Procedia-Social and Behavioral Sciences, 156, 548-552.
• Svabova, L., Kramarova, K., Chutka, J., & Strakova, L. (2020). Detecting earnings manipulation and fraudulent financial reporting in slovakia. Oeconomia Copernicana, 11(3), 485-508. doi:10.24136/OC.2020.020
• Vasilyeva, T., Kuzmenko, O., Bozhenko, V., & Kolotilina, O. (2019). Assessment of the dynamics of bifurcation transformations in the economy. Paper presented at the CEUR Workshop Proceedings, 2422 134-146.
• Vasilyeva, T., Sysoyeva, L., & Vysochyna, A. (2016). Formalization of factors that are affecting stability of ukraine banking system. Risk Governance and Control: Financial Markets and Institutions, 6(4), 7-11. doi:10.22495/rcgv6i4art1
• Vasylieva, T., Harust, Yu., Vynnychenko, N., & Vysochyna, A. (2018). Optimization of the financial decentralization level as an instrument for the country's innovative economic development regulation. Marketing and Management of Innovations, 4, 381- 390. http://doi.org/10.21272/mmi.2018.4-33
• World Bank. (2020). World development indicators 2017, World Bank. Retrieved from : https://data.worldbank.org/indicator
• Yelnikova, Ju., Barhaq, A.R. (2020). Transparency of responsible investment environment. Business Ethics and Leadership, 4(4), 68-75. https://doi.org/10.21272/bel.4(4).68-75.2020
• Zakharkina, L., Myroshnychenko, I., Smolennikov, D., & Pokhylko, S. (2018). Efficiency of innovation activity funding as the driver of the state's national economic security. Montenegrin Journal of Economics, 14(4), 159-173. doi:10.14254/1800-5845/2018.14-4.11
• Zaman, C., & Drcelic, B. (2009). Macro-stabilisation issues in the Serbian Economy: Methodological Evaluation. Retrieved from http://ssrn.com/abstract=1521660.
• Zandi, G., Torabi, R., & Shamsudin, M. F. (2020). Trust, uncertainty and investment: An exploration of a hidden link. [Zaufanie, niepewność i inwestycja: Odkrycie ukrytej linii] Polish Journal of Management Studies, 22(2), 594-607. doi:10.17512/pjms.2020.22.2.39
• Zolkover, A., & Georgiev, M. (2020). Shadow investment activity as a factor of macroeconomic instability. Financial Markets, Institutions and Risks, 4(4), 83-90. https://doi.org/10.21272/fmir.4(4).83-90.2020
• Zolkover, A., & Renkas, J. (2020b). Assessing the level of macroeconomic stability of EU Countries. SocioEconomic Challenges, 4(4), 175-182. https://doi.org/10.21272/sec.4(4).175-182.2020
• Zolkover, A., & Terziev, V. (2020c). The Shadow Economy: A Bibliometric Analysis. Business Ethics and Leadership, 4(3), 107-118. https://doi.org/10.21272/bel.4(3).107-118.2020

Identyfikatory

DOI

10.14254/2071-8330.2021/14-1/10