Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity?
A common conclusion in the literature is that both corruption and taxation hamper economic growth. It is also plausible that both affect total factor productivity, which, by the famous Solow residual, is a vital driver of economic progress. Moreover, corruption and tax burden are supposed to be inte...
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MDPI AG
2021-03-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/9/1/26 |
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doaj-44089f8687754da6833486aaf265350c2021-03-02T00:02:59ZengMDPI AGEconomies2227-70992021-03-019262610.3390/economies9010026Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity?Kouramoudou Kéïta0Hannu Laurila1Faculté des Sciences Economiques et de Gestion de l’Université de Kindia, Kindia BP:212, GuineaFaculty of Management and Business, Tampere University, FI-33014 Kalevantie, FinlandA common conclusion in the literature is that both corruption and taxation hamper economic growth. It is also plausible that both affect total factor productivity, which, by the famous Solow residual, is a vital driver of economic progress. Moreover, corruption and tax burden are supposed to be intertwined. This paper focuses on the supposedly linked effects of corruption and tax burden on total factor productivity. The empirical study uses panel data from 90 countries for the time span of 1996–2014. The results show that both corruption and tax burden deteriorate total factor productivity, but that an increase in tax burden mitigates the negative effect of corruption.https://www.mdpi.com/2227-7099/9/1/26corruptionSolow residualtax burdentotal factor productivity |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Kouramoudou Kéïta Hannu Laurila |
| spellingShingle |
Kouramoudou Kéïta Hannu Laurila Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity? Economies corruption Solow residual tax burden total factor productivity |
| author_facet |
Kouramoudou Kéïta Hannu Laurila |
| author_sort |
Kouramoudou Kéïta |
| title |
Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity? |
| title_short |
Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity? |
| title_full |
Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity? |
| title_fullStr |
Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity? |
| title_full_unstemmed |
Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity? |
| title_sort |
corruption and tax burden: what is the joint effect on total factor productivity? |
| publisher |
MDPI AG |
| series |
Economies |
| issn |
2227-7099 |
| publishDate |
2021-03-01 |
| description |
A common conclusion in the literature is that both corruption and taxation hamper economic growth. It is also plausible that both affect total factor productivity, which, by the famous Solow residual, is a vital driver of economic progress. Moreover, corruption and tax burden are supposed to be intertwined. This paper focuses on the supposedly linked effects of corruption and tax burden on total factor productivity. The empirical study uses panel data from 90 countries for the time span of 1996–2014. The results show that both corruption and tax burden deteriorate total factor productivity, but that an increase in tax burden mitigates the negative effect of corruption. |
| topic |
corruption Solow residual tax burden total factor productivity |
| url |
https://www.mdpi.com/2227-7099/9/1/26 |
| work_keys_str_mv |
AT kouramoudoukeita corruptionandtaxburdenwhatisthejointeffectontotalfactorproductivity AT hannulaurila corruptionandtaxburdenwhatisthejointeffectontotalfactorproductivity |
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