The Quality of Tax Administration, Macroeconomic Stability and Economic Growth: Assessment and Interaction

Abstract

The article deals with investigating the link between the quality of tax administration, macroeconomic stability and economic growth. The paper identifies the benefits and risks of the shadow operations for macroeconomic stability of the country. Based on the analysis of indicators of the effectiveness of tax policy implementation, an approach to assessing the quality of tax administration of the country was proposed. Based on empirical calculations, a conclusion about the low quality of tax policy in the country was made. The study of the relationship between the quality of tax administration and macroeconomic stability is based on the modified least squares method. The EU countries and Ukraine are identified as the statistical base of the study and the assessment period is 2005-2019. The results of modelling on the example of Ukraine and EU countries proved the relationship between the quality of tax administration of the country and level of its macroeconomic stability and shadow economy. All indices are statistically significant at the level of 1% and 5% and 10% respectively. This research let the authors conclude that it is necessary to take into account the quality of tax administration in forecasting the level of shadow economy and economic growth.

Effectiveness of anti-inflation policy that ensures economic growth: Evidence from post-Soviet countries

“…ness of choosing GDP growth as a key indicator of economic dynamics is confirmed by numerous studies(Tahat, 2023; Maris, 2022; Shafizada & Aslanova, 2022; Bilan et al, 2020; Vasilyeva et al, 2021).To improve the accuracy of modeling, control variables are integrated into the model, including agricultural land (% of land area), general government final consumption expenditure (% of GDP), gross fixed capital formation (% of GDP), and trade (% of GDP). The rationality of choosing such a set of control variables is confirmed by Lyulyov et al (2021) andZolkover et al (2022). The modeling results allow formalizing the impact of the inflation rate on the economic growth indicator in the short and long term for the entire panel of post-Soviet countries.Stage 3 is a determination of individual coefficients characterizing the relationship between the dynamics of inflationary processes and parameters of economic growth using least squares regression modeling in the Stata 14.2/SE software product.…”

Promotion of green economic growth in post-Soviet countries: Role of foreign direct and portfolio investments

“…Leonov et al (2012) and Vasylyeva et al (2014) also confirm that lack of institutional capacity significantly constrains the development of the investment segment of the financial market. Fiscal policy inefficiency and extremely high fiscal burden are also mentioned within obstacles that eliminate green economic growth outcomes as a response to investment inputs (Lyulyov et al, 2021;Zolkover et al, 2022). Filipava and Murshudli (2023) focus on the role of private financial institutions in sustainable development issues, including the major investment banks and companies, several European financial centers, London (Green Finance Initiative), Luxembourg (Green Exchange), and Paris (Finance for Tomorrow Initiative), and stock exchanges (in Dublin, Milan, Stockholm, and Frankfurt), as well as informal green associations in corporate and financial sectors (mutual obligations platforms, joint industry initiatives, lobby groups).…”

Banking system stability in crisis periods: The impact of the banking regulator independence

“…The evolutionary path of the development of the financial system, its interdisciplinary nature and connection with other sectors prove the decisive role of financial stability in ensuring the stability of economies (Njegovanović, 2023). It has been empirically confirmed that the quality of regulation and administration is the basis for ensuring macroeconomic stability (Zolkover et al, 2022). A country's economic growth largely depends on the impact of inflation, foreign exchange rates and interest rates (Sinaga, 2022;Kashcha & Dun, 2022;Adama et al, 2022;Aiyedogbon et al, 2022), and this influence is intensified in crisis conditions.…”