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Quality of Tax Administration : How Relevant is Country Size? / Mohammad Amin

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Amin, Mohammad
Contributor:
Amin, Mohammad
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Business Climate.
Country size.
Debt Markets.
E-Business.
Emerging Markets.
Fiscal Adjustment.
Macroeconomics and Economic Growth.
Public Sector Development.
Tax Administration.
Taxation & Subsidies.
Local Subjects:
Business Climate.
Country size.
Debt Markets.
E-Business.
Emerging Markets.
Fiscal Adjustment.
Macroeconomics and Economic Growth.
Public Sector Development.
Tax Administration.
Taxation & Subsidies.
Physical Description:
1 online resource (34 pages)
Other Title:
Quality of Tax Administration
Place of Publication:
Washington, D.C., The World Bank, 2011
System Details:
data file
Summary:
Repeated attempts at uncovering the relevance of country size for various economic factors have produced discouraging results. The present paper sheds new light on the relevance of country size using micro or firm-level data on firms' experience with the quality of tax administration, an important but neglected element of the business climate. The analysis finds that the quality of tax administration is significantly better for small compared with large countries. The instrumental variables regression method confirms that this finding is robust to various endogeneity concerns. The paper also finds some evidence that the country size and tax administration relationship is non-linear, and much stronger for small than large countries. Implications of these findings for the broader literature on country size are discussed.

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