Good governance: Role in the coherence of tax competition and shadow economy
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Author(s)Oleksiy MazurenkoLink to ORCID Index: https://orcid.org/0000-0001-5925-3692
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Inna TiutiunykLink to ORCID Index: https://orcid.org/0000-0001-5883-2940
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Dymytrii GrytsyshenLink to ORCID Index: https://orcid.org/0000-0002-1559-2403
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Ferdinand DaňoLink to ORCID Index: https://orcid.org/0000-0002-7756-781X
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Artem ArtyukhovLink to ORCID Index: https://orcid.org/0000-0003-1112-6891
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Robert RehakLink to ORCID Index: https://orcid.org/0000-0002-0303-9379
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DOIhttp://dx.doi.org/10.21511/ppm.21(4).2023.56
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Article InfoVolume 21 2023, Issue #4, pp. 757-770
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Creative Commons Attribution 4.0 International License
The formation of the country’s tax competitiveness and countering the shadowing of the economy depend on several factors. One of them is an effective public administration. It defines state policy vectors, institutions’ critical tasks, and business and society development priorities. The aim of the paper is to analyze the impact of good governance on the country’s tax competitiveness and the level of the shadow economy of 11 EU countries and Ukraine in 2011–2021. The study employs statistical analysis of data series. It constructs a correlation field of points of relationship between indicators (to determine the general trends of changes in the level of the shadow economy, tax competitiveness, and the Good Governance Index). Linear mathematical model and Fishburn formula are used to construct an integral indicator of the level of efficiency of public management (Good Governance Index). Structural modeling methods formalize the influence of government management on the level of the shadow economy and tax competitiveness. It was found that the Government Efficiency Index and the Corruption Control Index exert the most significant correlation with the level of tax competitiveness and the shadow economy. Its increase of 1% leads to a rise in the level of tax competitiveness of Slovakia by 7.015%, Croatia by 6.889%, the Czech Republic by 6.606%, and Romania by 5.773%. At the same time, the smallest correlation with the level of tax competitiveness performs an Index of Political Stability and Absence of Violence/Terrorism.
Acknowledgment
The study is funded by the project VEGA – 1/0392/23 “Changes in the approach to the creation of companies’ distribution management concepts influenced by the effects of social and economic crises caused by the global pandemic and increased security risks.”
The authors are grateful to the participants of projects 0123U101945 and 0122U000777 for numerous discussions and comments.
- Keywords
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JEL Classification (Paper profile tab)O17, H26
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References46
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Tables4
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Figures5
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- Figure 1. Normality of the distribution and descriptive statistics of the level of the shadow economy for 11 countries for 2011–2021
- Figure 2. Normality of the distribution and descriptive statistics of the level of tax competitiveness for 11 countries for 2011–2021
- Figure 3. Normality of the distribution and descriptive statistics of the Good Governance Index for 11 countries for 2011–2021
- Figure 4. Correlation field of points of relationship between the shadow economy and the Good Governance Index in a section of 11 countries for 2011–2021
- Figure 5. Correlation field of points of relationship between the level of tax competitiveness and the Good Governance Index for 11 countries for 2011–2021
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- Table 1. Weighting coefficients of indicators for assessing the country’s Good Governance Index
- Table 2. Evaluation results of Good Governance Index
- Table 3. Frequency distribution of Good Governance Index values
- Table А1. Parameters of the structural equations of the formalization of the influence of the Good Governance Index on the level of tax competitiveness
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Positive contribution of the good corporate governance rating to stability and performance: evidence from Indonesia
RR. Iramani , Muazaroh Muazaroh , Abdul Mongid
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.01
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 1-11 Views: 3212 Downloads: 314 TO CITE АНОТАЦІЯThis paper aims to examine the impact of Good Corporate Governance (GCG) practice on bank stability and performance. Governance is measured using the GCG rating that covers eleven aspects. The authors apply instrumental regression to link governance to performance and stability. The study covers a sample of 150 banks. The result shows that bank stability can mediate bank governance and bank performance. On the determinant of bank performance, it can be concluded that the GCG rating is positive and directly influences bank performance. Bank stability is also positive for bank performance indicating the indirect contribution of the GCG rating to bank performance. NPL, LDR, CAR and bank’s size (LASSET) are all negative and significant. The aim of this paper is to provide strong empirical evidence on the importance of governance and stability for performance. The limitations of this paper are the size of the sample and that it only covers public banks which are theoretically required to apply better governance in all aspects of their business by the Capital Market Authority.
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Level of shadow economy in Ukraine: reasons and ways to overcome
Alina Bukhtiarova ,
Arsen Hayriyan ,
Nataliia Vynokurova
doi: http://dx.doi.org/10.21511/pmf.07(1).2018.01
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Accountability and integrity as unique column of good governance
Noluthando Matsiliza ,
Nyaniso Zonke
doi: http://dx.doi.org/10.21511/pmf.06(1).2017.08
Public and Municipal Finance Volume 6, 2017 Issue #1 pp. 75-82 Views: 1390 Downloads: 986 TO CITE АНОТАЦІЯThe authors contend that accountability and integrity in public affairs are best preserved through enhancement of an integral system of legal prescripts, law, institutional policies and protocols. In the post-apartheid, South African public officials and political office bearers have been continuously criticized for allegedly transgressing ethical codes. Democracy has been tested due to violations of accountability, integrity and misconducts in the South African public service. However, this study argues that integrity can be enhanced when the society and those that are governing can preserve through specialized institutions legislation where law-makers are working with civil society to instill the culture of integrity.It is imperative to balance what is required for public officials’ conduct and what is done through parliamentary controls and certain caveats of highest honor. The value of accountability and integrity in public affairs can enjoy a resurgence in the last and present decade as the arrangements for public officials to operate in an environment that promotes good governance. This study reveals some concerns over the lack of commitment to preserve existing structures that could serve as mechanisms to promote good governance. A qualitative document analysis is employed to draw data from literature review. This paper’s findings contribute towards ethics and good governance in public administration.
