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Impact Of Tax Evasion On The Economic Growth In The European Union

Author

Listed:
  • FLORIN BOSTINA

    (WEST UNIVERSITY OF TIMISOARA)

Abstract

The relevance of the research topic emerges from the fact that an important part of the fiscal revenues is lost annually through activities of fiscal planning, fiscal circumvention and tax evasion, undertaken by the private sector. In this respect, the aim of the paper is to estimate, by using the econometric analysis, the impact of tax evasion on the economic growth in the European Union for the period 1997-2010 for which the data was available. For the tax evasion it have been used index as a proxy that optimizes by maximum. Thus the main hypothesis (that the index tax evasion positively influences the economic growth) was not rejected, even after including some specific control variables in the regressive models. In other words, as tax evasion is increased the economic growth is likely to decrease.

Suggested Citation

  • Florin Bostina, 2017. "Impact Of Tax Evasion On The Economic Growth In The European Union," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 163-169, December.
    • Handle: RePEc:cbu:jrnlec:y:2017:v:6:p:163-169
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    References listed on IDEAS

    as
    1. Feige, Edgar L. & Cebula, Richard, 2011. "America’s unreported economy: measuring the size, growth and determinants of income tax evasion in the U.S," MPRA Paper 34781, University Library of Munich, Germany.
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    3. Braun, Juan & Loayza, Norman V., 1994. "Taxation, public services, and the informal sector in a model of endogenous growth," Policy Research Working Paper Series 1334, The World Bank.
    4. Been-Lon Chen, 2003. "Tax Evasion in a Model of Endogenous Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(2), pages 381-403, April.
    5. Feige, Edgar L. & Cebula, Richard, 2011. "America’s Underground Economy: Measuring the Size, Growth and Determinants of Income Tax Evasion in the U.S," MPRA Paper 29672, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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