Does e-government improve government capacity? Evidence from tax compliance costs, tax revenue and public procurement competitiveness

Kochanova, Anna ORCID: https://orcid.org/0000-0003-3531-7561, Hasnain, Zaine and Larson, Bradley 2020. Does e-government improve government capacity? Evidence from tax compliance costs, tax revenue and public procurement competitiveness. World Bank Economic Review 34 (1) , pp. 101-120. 10.1093/wber/lhx024

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Abstract

Using cross-country data on e-government systems, we analyze whether e-filing of taxes and eprocurement adoption improves the capacity of governments to raise and spend fiscal resources through lowering tax compliance costs, improving tax collection and public procurement competitiveness, and reducing corruption. We find that adopting e-filing systems reduces tax compliance costs as measured by the time to prepare and pay taxes, the likelihood and frequency of firms being visited by a tax official, and the perception of tax administration as an obstacle to firms’ operation and growth. E-filing is also associated with a moderate increase in the income tax revenue to GDP ratio. The results for e-procurement are weaker, with the number of firms securing or attempting to secure a government contract increasing only in countries with higher levels of development and better institutions. We find no strong relationship between e-government and corruption.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Oxford University Press (OUP)
ISSN:	0258-6770
Date of First Compliant Deposit:	22 November 2017
Date of Acceptance:	30 August 2017
Last Modified:	05 Dec 2024 10:15
URI:	https://orca.cardiff.ac.uk/id/eprint/106927

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