Assessment of underground economy and tax evasion: Empirical evidence from Pakistan

2017 ◽  
Vol 1 (1) ◽  
pp. 21-34
Author(s):  
Minhaj-ud-Din ◽  
Javed Iqbal ◽  
Zia-ur Rahman
Keyword(s):  
Economic Performance ◽  
Tax Evasion ◽  
Driving Force ◽  
Underground Economy ◽  
Maximum Value ◽  
Monetary Approach ◽  
Increasing Trend ◽  
Effective Policy ◽  
The Impact ◽  
Underground Economies

Underground economy has serious implications for economic performance and public policy of a country. The purpose of this paper is to estimate the size of underground economy and tax evasion in Pakistan for the period 1973-2016. This study uses monetary approach for estimation of size of the underground economy and tax evasion in Pakistan. The results indicated that increase in taxes, intensity of regulation, and inflation were the driving force of underground economy. The estimates show that the size of underground economy in Pakistan showed an increasing trend from 1974 onward and attained its maximum value in 1998. Thereafter, its size exhibited decreasing trend with small fluctuations. Interestingly, the impact of taxation reforms introduced in 1997 was not considerable. Results indicated that the tax burden is the driving force for the existence of underground economy which need to be appropriately set and enforced. This may discourage people from indulging in underground economies. The results from this study can be used for effective policy formulations with respect to underground economy.

Measuring the Underground Economy and its Impact on the Economy of Pakistan

2004 ◽  
Vol 9 (2) ◽  
pp. 93-103 ◽  
Author(s):  
Bushra Yasmin ◽  
Hira Rauf
Keyword(s):  
Tax Evasion ◽  
Underground Economy ◽  
Least Square ◽  
Demand Equation ◽  
Ordinary Least Square ◽  
Economic Problems ◽  
Time Period ◽  
Monetary Approach ◽  
Currency Demand ◽  
The Impact

This study focuses on the measurement of the underground economy (UGE) through tax evasion in Pakistan over the time period 1974-2002. The monetary approach is applied in order to estimate the underground economy. First, the currency demand equation is estimated and then an attempt is made to deduce the size of the underground economy and tax evasion. Finally, an Ordinary Least Square (OLS) Model is applied in order to estimate the impact of the underground economy on Gross Domestic Product of Pakistan for a selected time period. The results demonstrated that the underground economy has increased enormously from Rs. 12 billion in 1974 to Rs. 1085 billion in 2002. The findings suggest that the existence of such a large UGE can decrease tax revenues, depress GDP, and raise socio-economic problems. Frequent tax audits and heavier penalties for tax evasion may minimise the size of the underground economy with its ill effects.

scholarly journals The Underground Economy and Tax Evasion in Pakistan: Annual Estimates (1960-1998) and the Impact of Dollarisation of the Economy

1998 ◽  
Vol 37 (4II) ◽  
pp. 621-631 ◽  
Author(s):  
Salman Aslam
Keyword(s):  
Tax Evasion ◽  
Structural Changes ◽  
Underground Economy ◽  
Structural Reforms ◽  
Economic Policies ◽  
Budget Deficits ◽  
Policy Changes ◽  
Lack Of Information ◽  
Macroeconomic Indicators ◽  
The Impact

The underground economy (DE) and tax evasion have been a focus of research in Pakistan for many years now. The growing interest in these areas is because of persistent budget deficits resulting from inadequate tax revenues. It is not the presence but the size of the underground economy and the extent of tax evasion that is a major cause of concern. The growth rate of the underground economy is crucial to policy making. Lack of information in this regard is often held responsible for distortions in major macroeconomic indicators. In effect, the socio-economic policies based on the~e indicators are made ineffectual. Thus up-to-date estimates of the size and growth of the underground economy are very importaRt. Social and economic policies directly affect the size and growth of the underground economy. Major policy changes like structural reforms in the financial and banking sectors make a significant impact on both .economies. In this respect, it is crucial to gauge the impact of structural changes like dollarisation of the economy on underground activities.

The Impact of Property Characteristics on Economic Performance of Russian Industrial Enterprises

2005 ◽  
pp. 53-68 ◽  
Author(s):  
R. Kapeliushnikov ◽  
N. Demina
Keyword(s):  
Detailed Analysis ◽  
Economic Performance ◽  
Ownership Concentration ◽  
Corporate Sector ◽  
Concentrated Ownership ◽  
Industrial Enterprises ◽  
Russian Industry ◽  
Control Premium ◽  
And Performance ◽  
The Impact

The paper provides new survey evidence on effects of concentrated ownership upon investment and performance in Russian industrial enterprises. Authors trace major changes in their ownership profile, assess pace of post-privatization redistribution of shareholdings and provide evidence on ownership concentration in the Russian industry. The major econometric findings are that the first largest shareholding is negatively associated with the firm’s investment and performance but surprisingly the second largest shareholding is positively associated with them. Moreover, these relationships do not depend on identity of majority shareholders. These results are consistent with the assumption that the entrenched controlling owners are engaged in extracting "control premium" but sizable shareholdings accumulated by other blockholders may put brakes on their expropriating behavior and thus be conductive for efficiency enhancing. The most interesting topic for further more detailed analysis is formation, stability and roles of coalitions of large blockholders in the corporate sector of post-socialist countries.

Peranan Negara dalam Liberalisasi Ekonomi Vietnam: Analisis Terhadap Dasar Doi Moi 1986

2020 ◽  
Author(s):  
Muhamad Helmy Sabtu ◽  
◽  
Khairul Azman Mohamad Suhaimy ◽  
Nurul Aimi Razali
Keyword(s):  
Gender Equality ◽  
Foreign Investment ◽  
Economic Performance ◽  
Level Of Education ◽  
Positive Effects ◽  
Doi Moi ◽  
The People ◽  
Effective Policy ◽  
Economic Landscape

This article analyses the role of state in the policy of economic liberalisation in Vietnam. Doi Moi, which was launched in 1986, is a very influential and effective policy in changing the socio-economic landscape of the people in the country. The results of this study prove that there are positive effects on the increase of foreign investment inflows, the eradication of starvation and unruly poverty, the increase of level of education, the improvement of gender equality and women's rights as well as the sustainability of the environment after Doi Moi is implemented. Through Doi Moi, Vietnam is moving towards a developing country status with good economic performance both at the Southeast Asian and global.

scholarly journals Evaluation of the impact of compliance of precast discs of overlapping on the work of the frame of a multi-storey building

2019 ◽  
Vol 97 ◽  
pp. 04022
Author(s):  
Nikolay Trekin ◽  
Emil Kodysh ◽  
Alexander Bybka ◽  
Alexander Yamalov ◽  
Nikita Konkov
Keyword(s):  
Economic Performance ◽  
Computational Models ◽  
Precast Concrete ◽  
Building Frames ◽  
Frame Building ◽  
Numerical Studies ◽  
Frame Buildings ◽  
The Impact ◽  
Structural Solutions ◽  
Storey Building

The article provides an analysis and justification of the need to take into account the compliance of discs of overlapping and coatings when calculating frames from precast concrete structures. Previously conducted full-scale experiments showed that the rigidity of the precast overlapping with full filling of the seams, in comparison with the monolithic overlapping, decreases by 3-15 times due to the ductility of the joints. The use of refined computational models of structural solutions for frames, which take into account the compliance of the conjugations of elements, makes it possible to trace possible redistribution of efforts. Such an approach when reconstructing, it is possible to optimally select and calculate the enforcement of structure, and on new designing, to increase reliability and / or improve the economic performance of frame buildings. According to the results of analytical studies, formulas were adopted for the parameters that allow one to take into account the overall compliance of overlapping disks and coatings in computational models of building frames. Numerical studies on the computational model of a frame building made it possible to evaluate the effect of accounting for compliance on the stress-strain state of a multi-storey frame.

scholarly journals Land Subsidence Estimation for Aquifer Drainage Induced by Underground Mining

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4658
Author(s):  
Artur Guzy ◽  
Wojciech T. Witkowski
Keyword(s):  
Environmental Impact ◽  
Land Subsidence ◽  
Field Data ◽  
Underground Mining ◽  
Small Scale ◽  
Aquifer System ◽  
Maximum Value ◽  
The Impact ◽  
Method Model ◽  
Impact Of Mining

Land subsidence caused by groundwater withdrawal induced by mining is a relatively unknown phenomenon. This is primarily due to the small scale of such movements compared to the land subsidence caused by deposit extraction. Nonetheless, the environmental impact of drainage-related land subsidence remains underestimated. The research was carried out in the “Bogdanka” coal mine in Poland. First, the historical impact of mining on land subsidence and groundwater head changes was investigated. The outcomes of these studies were used to construct the influence method model. With field data, our model was successfully calibrated and validated. Finally, it was used for land subsidence estimation for 2030. As per the findings, the field of mining exploitation has the greatest land subsidence. In 2014, the maximum value of the phenomenon was 0.313 cm. However, this value will reach 0.364 m by 2030. The spatial extent of land subsidence caused by mining-induced drainage extends up to 20 km beyond the mining area’s boundaries. The presented model provided land subsidence patterns without the need for a complex numerical subsidence model. As a result, the method presented can be effectively used for land subsidence regulation plans considering the impact of mining on the aquifer system.

scholarly journals The impact of stock market manipulation on Nigeria’s economic performance

2020 ◽  
Vol 9 (1) ◽  
Author(s):  
Babatunde Akinmade ◽  
Festus Fatai Adedoyin ◽  
Festus Victor Bekun
Keyword(s):  
Stock Market ◽  
Economic Performance ◽  
Market Manipulation ◽  
The Impact

scholarly journals Corruption, Taxation and the Impact on the Shadow Economy

Economies ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 18 ◽  
Author(s):  
Daniel Němec ◽  
Eva Kotlánová ◽  
Igor Kotlán ◽  
Zuzana Machová
Keyword(s):  
Tax Evasion ◽  
Capital Accumulation ◽  
Shadow Economy ◽  
Labour Force ◽  
Destructive Effect ◽  
Eu Member States ◽  
Initial Assumption ◽  
The Individual ◽  
The Impact

While assessing the economic impacts of corruption, the corruption-related transmission channels which influence taxation as such have to be duly considered. Taking the example of the Czech Republic, this article aims to evaluate the impacts corruption has on the size of the shadow economy as well as on the individual sources of long-term economic growth, making use of a transmission channel through which corruption affects the tax burden components. Using the method of an extended DSGE model, it confirms the initial assumption that an increase in perceived corruption supports the shadow economy’s growth, but at the same time, it demonstrates that corruption and especially its perception has a significantly different effect on two key areas—the capital accumulation and the labour force size. It further identifies another sector of the economy representing taxes which are prone to tax evasion while asserting that corruption has a much more destructive effect on this sector of the economy, offering generalized implications for other post-communist EU member states in a similar situation.

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