The Effect of Legal System and Protection of Property Rights on the Size of the Tax Evasion: Panel Analysis

Authors : Hüseyin Safa ÜNAL, Jülide YALÇINKAYA KOYUNCU

Pages : 153-165

View : 52 | Download : 13

Publication Date : 2019-06-01

Article Type : Research Paper

Abstract :This study seeks to find the impact of legal system and protection of property rights on the size of tax evasion. For this aim, MIMIC model estimates of size of tax evasion as percentage of GDP are utilized. Based on the Swamy’s slope homogeneity test results, Group Mean Panel Dynamic OLS estimation is conducted. Long-run coefficients show that the relationship between tax evasion and impartial courts is negative in average. The relationship between tax evasion and protection of property rights is also negative in average. However, the signs of the relationship vary across economies within the sample.
Keywords : Tax Evasion, Impartial Courts, Legal System, Property Rights, Panel Dynamic OLS

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