The role of corruption control in moderating the relationship between value added tax and income inequality

This paper investigates the mediating role of the control of corruption on value added tax (VAT) and income inequality in the top 10 most corrupted countries. We employed quantile regression to capture the varying effects of income inequality. The results suggest that most corrupted countries with...

Full description

Bibliographic Details
Main Authors:	Mustapha, Mohd Zulkhairi, Koh, Eric H. Y., Chan, Sok-Gee, Ramly, Zulkufly
Format:	Article
Language:	English
Published:	EconJournals 2017
Subjects:	HB Economic Theory HF Commerce HF5001 Business. Business Administration HJ Public Finance HJ2240 Revenue. Taxation
Online Access:	http://irep.iium.edu.my/58039/ http://irep.iium.edu.my/58039/ http://irep.iium.edu.my/58039/1/Ramly%20Z_Corruption%20Control_IJEFI.pdf

id	iium-58039
recordtype	eprints
spelling	iium-580392018-01-12T07:09:03Z http://irep.iium.edu.my/58039/ The role of corruption control in moderating the relationship between value added tax and income inequality Mustapha, Mohd Zulkhairi Koh, Eric H. Y. Chan, Sok-Gee Ramly, Zulkufly HB Economic Theory HF Commerce HF5001 Business. Business Administration HJ Public Finance HJ2240 Revenue. Taxation This paper investigates the mediating role of the control of corruption on value added tax (VAT) and income inequality in the top 10 most corrupted countries. We employed quantile regression to capture the varying effects of income inequality. The results suggest that most corrupted countries with lower income inequality did not benefit from VAT, but they stand to gain if the income inequality is wide. VAT seems to improve the effectiveness of tax collection, which the government can allocate the higher tax revenues for social and economic programs to benefit poor people. Our finding also suggests the extent of control of corruption and the improved governance of tax collection via VAT in our sample that consists of countries with high level of corruption are not strong enough to reduce income inequality. EconJournals 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/58039/1/Ramly%20Z_Corruption%20Control_IJEFI.pdf Mustapha, Mohd Zulkhairi and Koh, Eric H. Y. and Chan, Sok-Gee and Ramly, Zulkufly (2017) The role of corruption control in moderating the relationship between value added tax and income inequality. International Journal of Economics and Financial Issues, 7 (4). pp. 459-467. ISSN 2146-4138 http://www.econjournals.com/index.php/ijefi/article/view/5124/pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HB Economic Theory HF Commerce HF5001 Business. Business Administration HJ Public Finance HJ2240 Revenue. Taxation
spellingShingle	HB Economic Theory HF Commerce HF5001 Business. Business Administration HJ Public Finance HJ2240 Revenue. Taxation Mustapha, Mohd Zulkhairi Koh, Eric H. Y. Chan, Sok-Gee Ramly, Zulkufly The role of corruption control in moderating the relationship between value added tax and income inequality
description	This paper investigates the mediating role of the control of corruption on value added tax (VAT) and income inequality in the top 10 most corrupted countries. We employed quantile regression to capture the varying effects of income inequality. The results suggest that most corrupted countries with lower income inequality did not benefit from VAT, but they stand to gain if the income inequality is wide. VAT seems to improve the effectiveness of tax collection, which the government can allocate the higher tax revenues for social and economic programs to benefit poor people. Our finding also suggests the extent of control of corruption and the improved governance of tax collection via VAT in our sample that consists of countries with high level of corruption are not strong enough to reduce income inequality.
format	Article
author	Mustapha, Mohd Zulkhairi Koh, Eric H. Y. Chan, Sok-Gee Ramly, Zulkufly
author_facet	Mustapha, Mohd Zulkhairi Koh, Eric H. Y. Chan, Sok-Gee Ramly, Zulkufly
author_sort	Mustapha, Mohd Zulkhairi
title	The role of corruption control in moderating the relationship between value added tax and income inequality
title_short	The role of corruption control in moderating the relationship between value added tax and income inequality
title_full	The role of corruption control in moderating the relationship between value added tax and income inequality
title_fullStr	The role of corruption control in moderating the relationship between value added tax and income inequality
title_full_unstemmed	The role of corruption control in moderating the relationship between value added tax and income inequality
title_sort	role of corruption control in moderating the relationship between value added tax and income inequality
publisher	EconJournals
publishDate	2017
url	http://irep.iium.edu.my/58039/ http://irep.iium.edu.my/58039/ http://irep.iium.edu.my/58039/1/Ramly%20Z_Corruption%20Control_IJEFI.pdf
first_indexed	2023-09-18T21:22:04Z
last_indexed	2023-09-18T21:22:04Z
_version_	1777411947782733824

The role of corruption control in moderating the relationship between value added tax and income inequality

Similar Items