The impact of shadow economy and government expenditure on tax ratios: Corruption’s role in ASEAN
DOI:
https://doi.org/10.54957/educoretax.v5i4.1444Kata Kunci:
Corruption Perception Index, Government Expenditure, Shadow Economy, Tax RatioAbstrak
This study aims to analyze how shadow economy and government expenditure affect tax ratio and whether corruption perception index (CPI) can moderate these relationships. The shadow economy poses a significant challenge to tax revenue collection. Appropriate government expenditure is also expected to increase the tax base. However, the effectiveness of government expenditure is often undermined by corruption, which erodes public trust and compliance. This research was conducted using panel data regression. The samples used were countries in the ASEAN region between 2012 and 2020. The results show that shadow economy has a significant negative impact on tax ratio, while government expenditure has a positive effect. CPI significantly moderates these relationships, enhancing the negative impact of shadow economy and reducing the positive effect of government expenditure on tax ratio. The study concludes that reducing shadow economy and increasing government expenditure are crucial for improving tax ratio in ASEAN countries. However, the effectiveness of these measures depends on strong corruption control. Policymakers should prioritize anti-corruption efforts to enhance public trust and compliance, thereby optimizing tax revenue collection.
Referensi
Adigbole, E. A., Olaniyi, T. A., Oladipo, O. A., Kuranga, A. F., Fakile, O. G., & Oladipo, A. O. (2023). Impact of transparency and government spending on tax ratio in ecowas nations: pre–covid era. Jurnal Administrasi Bisnis, 12(2), 137–148. https://doi.org/10.14710/jab.v12i2.51211
Baltagi, B. H. (n.d.). Econometric Analysis of Panel Data Third edition. www.spss-pasw.ir
Buehn, A., & Schneider, F. (2012). Shadow economies around the world: Novel insights, accepted knowledge, and new estimates. International Tax and Public Finance, 19(1), 139–171. https://doi.org/10.1007/s10797-011-9187-7
Buszko, A., & Skorwider-Namiotko, J. (2021). Impact of shadow economy and corruption on tax efficiency. Journal of Management and Financial Sciences, 42, 9–24.
Cempakasari, I., & Kuntadi, C. (2022). Faktor-faktor yang memengaruhi utang negara: defisit anggaran, nilai yukar (kurs) dan produk domestik bruto. Jurnal Ekonomi Manajemen Sistem Informasi, 4(2), 176–183. https://doi.org/10.31933/jemsi.v4i2
Chandra Bhuana, B., & Wijaya, S. (2024). Control of corruption in moderating the effect of per capita income and shadow economy on tax revenue. Educoretax, 4(6), 736–746.
Choi, J. P., & Thum, M. (2003). Corruption and the shadow economy. In International Economic Review (02/03; Vol. 46, Issue 3). http://www.ssrn.com
Dreher, A., Kotsogiannis, C., & Mccorriston, S. (2004). Corruption around the world: evidence from a structural model. Journal of Comparative Economics, 35(3), 443–466.
Dreher, A., & Schneider, F. (2010). Corruption and the shadow economy: An empirical analysis. Public Choice, 144(1), 215–238. https://doi.org/10.1007/s11127-009-9513-0
Gujarati, D. N., & Porter, D. C. (2020). Basic Econometrics (5th ed.). McGraw-Hill.
Gurdal, T., Aydin, M., & Inal, V. (2021). The relationship between tax revenue, government expenditure, and economic growth in G7 countries: new evidence from time and frequency domain approaches. Economic Change and Restructuring, 54(2), 305–337. https://doi.org/10.1007/s10644-020-09280-x
Huňady, J., & Orviská, M. (2015). The effect of corruption on tax revenue in OECD and latin america countries. Proceedings of the 20th International Conference Theoretical and Practical Aspects of Public Finance 2015, 80–85.
Iliyasu, I., & Muhammed, I. (2023). Growth effects of government expenditure in Nigeria: Does the level of corruption matter? Asian Journal of Economics and Empirical Research, 10(1), 1–10. https://doi.org/10.20448/ajeer.v10i1.4406
Indrawan, J., Ilmar, A., & Simanihuruk, H. (2020). Korupsi dalam Pengadaan Barang dan Jasa di Pemerintah Daerah. Jurnal Transformative, 6(2), 127–147. https://doi.org/10.21776/ub.transformative.2020.006.02.1
Indupurnahayu, & Walujadi, D. (2019). Shadow economy and loss of potential taxes in Indonesia: Empirical study 1990-2018. Opción: Revista de Ciencias Humanas y Sociales, 20, 872–894.
Johnson, S., Kaufmann, D., & Zoido-Lobatón, P. (1998). Regulatory discretion and the unofficial economy. The American Economic Review, 88(2), 387–392.
Kodila-Tedika, O., & Mutascu, M. (2013). Shadow economy and tax revenue in Africa. In Munich Personal RePEc Archive (50812; Munich Personal RePEc Archive Paper).
Kurniawan, T. S., Sari, D. W., & Irmawati, D. R. (2020). Analisis pengaruh realisasi belanja pemerintah terhadap penerimaan pajak di indonesia. Indonesian Treasury Review, 5(3), 171–181.
Mauro, P. (1998). Corruption and the composition of government expenditure. Journal of Public Economics (Vol. 69).
Mawejje, J., & Munyambonera, E. F. (2016). Towards Sustainable Development Tax Revenue Effects of Sectoral Growth and Public Expenditure in Uganda.
Monte, A. Del, & Papagni, E. (2001). Public expenditure, corruption, and economic growth: the case of italy. European Journal of Political Economy, 17(1), 1–16.
Nan, S. (2021). Study on the relationship of grassroots corruption and government expenditure based on panel data. Procedia Computer Science, 199, 1192–1197. https://doi.org/10.1016/j.procs.2022.01.151
Nguyen, M. L. T., & Bui, N. T. (2022). Government expenditure and economic growth: does the role of corruption control matter? Heliyon, 8(10). https://doi.org/10.1016/j.heliyon.2022.e10822
Oanh, T. T. K., Quoc, H. Van, Nha, L. T., Chau, N. T. B., & Phat, N. H. (2024). The relationship between the shadow economy, corruption, and taxes: empirical evidence from countries with high and low financial development. Studia Universitatis Vasile Goldis Arad, Economics Series, 34(4), 78–104. https://doi.org/10.2478/sues-2024-0019
Omodero, C. O. (2019). The consequences of shadow economy and corruption on tax revenue performance in nigeria. Studia Universitatis Vasile Goldis Arad, Economics Series, 29(3), 64–79. https://doi.org/10.2478/sues-2019-0012
Samuda, S. J. A. (2016). Underground economy in indonesia. Buletin Ekonomi Moneter Dan Perbankan, 119(1).
Schneider, F., & Enste, D. (2000). Shadow economies around the world – size, causes, and consequences. Journal of economic literature (196; Vol. 38).
Wiguna, Y., & Wijaya, S. (2024). Understanding the influence of shadow economy and foreign direct investment on corporate tax revenue in latin america: the moderating effect of corruption control. Educoretax, 4(4).
Wooldridge, J. M. (2016). Introductory econometrics. A modern approach (6th ed.). Cengage Learning. www.cengage.com/highered
Yossinomita, Haryadi, Nainggolan, S., & Zulfanneti. (2024). Maximizing economic growth in indonesia: a model-based exploration of optimal tax ratios. Jurnal Perbendaharaan, Keuangan Negara Dan Kebijakan Publik, 9, 87–98.
Zuhrah, N., Umamah, R., Kurniawan, H., & Nurcahya, W. F. (2024). Pengaruh reformasi dan modernisasi perpajakan terhadap kepatuhan dan penerimaan pajak di indonesia. Journal of Macroeconomics and Social Development (Vol. 1, Issue 4). https://economics.pubmedia.id/index.php/jmsd
Unduhan
Diterbitkan
Cara Mengutip
Terbitan
Bagian
Lisensi
Hak Cipta (c) 2025 Lalu Hizby Briliansyah
Artikel ini berlisensi Creative Commons Attribution 4.0 International License.
