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Government Size and Tax Evasion: Evidence from China.
- Source :
- Pacific Economic Review; May2015, Vol. 20 Issue 2, p346-364, 19p
- Publication Year :
- 2015
-
Abstract
- This paper investigates how government size affects tax evasion in China. Using matched county-firm data for 1998-2005, we estimate the impact of county government size on the relationship between a firm's reported profit and imputed profit based on the national income accounts. A larger government is found to be correlated with more severe tax evasion, especially for state-owned and collectively-owned firms. Such an effect is stronger when local governance become worse. This paper shows that a large government does not bring about a strong state capacity to enforce tax rules at the local level in China. [ABSTRACT FROM AUTHOR]
- Subjects :
- TAX evasion
GOVERNMENT size
NATIONAL income
CORPORATE taxes
Subjects
Details
- Language :
- English
- ISSN :
- 1361374X
- Volume :
- 20
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Pacific Economic Review
- Publication Type :
- Academic Journal
- Accession number :
- 102482433
- Full Text :
- https://doi.org/10.1111/1468-0106.12110