International Journal of Social Science & Economic Research
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Title:
DOES DIGITALIZATION REDUCE TAX EVASION? EMPIRICAL EVIDENCE FROM WAEMU COUNTRIES

Authors:
Urbain Gbodjinou DOSSA , Daniel Rodrigue BAKENA , Jean Cocou KPADE and Leandre Alognikou DOSSA

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Urbain Gbodjinou DOSSA1 , Daniel Rodrigue BAKENA2 , Jean Cocou KPADE3 and Leandre Alognikou DOSSA4
1,2,3,4. University of Abomey-Calavi, Benin

MLA 8
DOSSA, Urbain Gbodjinou, et al. "DOES DIGITALIZATION REDUCE TAX EVASION? EMPIRICAL EVIDENCE FROM WAEMU COUNTRIES?" Int. j. of Social Science and Economic Research, vol. 9, no. 4, Apr. 2024, pp. 1316-1334, doi.org/10.46609/IJSSER.2024.v09i04.029. Accessed Apr. 2024.
APA 6
DOSSA, U., BAKENA, D., KPADE, J., & DOSSA, L. (2024, April). DOES DIGITALIZATION REDUCE TAX EVASION? EMPIRICAL EVIDENCE FROM WAEMU COUNTRIES? Int. j. of Social Science and Economic Research, 9(4), 1316-1334. Retrieved from https://doi.org/10.46609/IJSSER.2024.v09i04.029
Chicago
DOSSA, Urbain Gbodjinou, Daniel Rodrigue BAKENA, Jean Cocou KPADE, and Leandre Alognikou DOSSA. "DOES DIGITALIZATION REDUCE TAX EVASION? EMPIRICAL EVIDENCE FROM WAEMU COUNTRIES?" Int. j. of Social Science and Economic Research 9, no. 4 (April 2024), 1316-1334. Accessed April, 2024. https://doi.org/10.46609/IJSSER.2024.v09i04.029.

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ABSTRACT:
This article analyzes the effect of digitalization on tax evasion in WAEMU countries. To this end, we estimated a panel data model covering WAEMU countries over the period 2002-2019. The results obtained by the within estimator indicate, on one hand, that digitalization through internet penetration has a significantly negative effect on tax evasion. It therefore contributes significantly to reducing tax evasion in WAEMU countries. Mobile phone penetration and broadband subscriptions have positive but non-significant effects on tax evasion. On the other hand, we find that the improvement in living standards and education in the sub-region is accompanied by a reduction in tax evasion in union countries. Furthermore, the increase in unemployment rates and urbanization leads to an increase in tax evasion. In terms of economic policy implications, this study suggests intensifying digitalization through access to new technologies and related training. Improving living conditions and education, combating unemployment, and better monitoring of urban activities are necessary for reducing tax evasion and improving WAEMU's tax revenue.

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