Purpose This study aims to examine the impact of financial inclusion on per capita gross domestic product (GDP) at varying degrees of financial inclusion for a sample of 76 developing countries between 2011 and 2017. To evaluate the heterogeneous impact, this paper constructs the multi-dimension index of financial inclusion to classify sample countries into two sub-samples in terms of the value of FIID, taking account of three dimensions of financial inclusion: access, usage and availability. Design/methodology/approach This study attempts to identify the presence of reverse causality and long-run relationship between financial inclusion and economic growth by using the Granger causality test (Wald test) and three alternative panel cointegration tests (Kao Test, Pedroni Test, Westerlund Test) respectively. Because of the existence of the bi-directional causality between financial inclusion and per capita GDP, this study uses a fixed effect instrumental variable model with lagged dependent variable to get unbiased estimators from the panel regressions for sample countries. Findings This paper finds a strong positive impact of financial inclusion on per capita GDP growth in sample developing countries, controlling for labor market structure, financial institutions’ efficacy, infrastructural and governance issues. This study suggests that economic growth will be high in developing economies with a higher level of financial inclusion; however, the positive impact for two sub-samples countries (low and medium level of inclusion and high level of inclusion) are heterogeneous. The estimated result explains that a 1% increase in the financial inclusion index leads to a 0.0153% point increase in the per capita GDP for the countries with a low and medium level of financial inclusion, while this positive impact is significantly higher, 0.0794% point for countries with the high level of financial inclusion. This study also suggests that the higher concentration in the financial market by few agents and the lower level of governance may have an adverse impact on economic growth for the economies with a low and medium level of financial inclusion. Originality/value This study is an original study that contributes to the research gap by explaining the heterogeneous impact of financial inclusion on economic growth at varying degrees of inclusion in the two sub-sample countries. Moreover, this study posits greater appeal as it explores the issue using the sample of only developing economies.

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The automated tax system has been taken as an effective tool for modernizing the tax system. The automated tax system can easily store all types of reported income, and it makes the tax submission procedure easy and convenient, resulting in reducing the compliance cost. The main objective of this chapter is to explain the necessity of an automated value added tax (VAT) system for raising domestic resource mobilization and how automation can be a better alternative to finance sustainable development goals projects. The secondary data was collected from the National Board of Revenue, Bangladesh. This study explains that the entire VAT system's automation can reduce the taxpayers' incentive to evade tax by reducing the tax compliance and taking bribes of tax officials. In sum, automation of the tax system would ultimately be pragmatic tax reform for the financing in the SDG projects.

The automated tax system has been taken as an effective tool for modernizing the tax system. The automated tax system can easily store all types of reported income, and it makes the tax submission procedure easy and convenient, resulting in reducing the compliance cost. The main objective of this chapter is to explain the necessity of an automated value added tax (VAT) system for raising domestic resource mobilization and how automation can be a better alternative to finance sustainable development goals projects. The secondary data was collected from the National Board of Revenue, Bangladesh. This study explains that the entire VAT system's automation can reduce the taxpayers' incentive to evade tax by reducing the tax compliance and taking bribes of tax officials. In sum, automation of the tax system would ultimately be pragmatic tax reform for the financing in the SDG projects.