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Article
Publication date: 30 October 2009

Rangan Gupta and Emmanuel Ziramba

This paper aims at developing a theoretical model of a world economy characterized by tax evasion. It seeks to analyze whether financial repression can be explained by tax evasion.

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Abstract

Purpose

This paper aims at developing a theoretical model of a world economy characterized by tax evasion. It seeks to analyze whether financial repression can be explained by tax evasion.

Design/methodology/approach

The analysis is performed in overlapping generations dynamic general equilibrium endogenous monetary growth models.

Findings

The paper shows that higher degree of tax evasion within a country, resulting from a higher level of corruption and a lower penalty rate, yields higher degrees of financial repression.

Practical implications

Financial repression can be explained by tax evasion but under specific conditions.

Originality/value

This is the first attempt to analyze financial repression and tax evasion in an endogenous growth model.

Details

Journal of Economic Studies, vol. 36 no. 6
Type: Research Article
ISSN: 0144-3585

Keywords

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Article
Publication date: 5 January 2021

Emmanuel Onyebuchi Onah, Angela Ifeanyi Ujunwa, Augustine Ujunwa and Oloruntoba Samuel Ogundele

This paper aims to examine the effect of financial technology on cash holding in Nigeria.

851

Abstract

Purpose

This paper aims to examine the effect of financial technology on cash holding in Nigeria.

Design/methodology/approach

The authors use Pesaran et al.’s (2001) autoregressive distributed lag (ARDL) bounds test approach to cointegration to estimate the long-run relationship between four direct measures of financial technology (automated teller machine [ATM], Internet banking [IB], point of sale [POS] and mobile banking [MB]) and cash holding.

Findings

The authors find the presence of long-run negative relationship between cash holding and the four direct measures of financial technology.

Practical implications

Despite the negative effect of financial technology on cash holding, the descriptive results highlight increasing trajectory in cash holding. This suggests that structural factors such as ethical climate, literacy level, household characteristics, currency denomination structures, economic uncertainty and infrastructure deficit may account for the pervasive cash transactions in Nigeria and not necessarily the unwillingness of economic agents to use digital platform for financial transactions.

Originality/value

This study contributes to existing literature by augmenting the money demand function to accommodate direct measures of financial technology in examining the effectiveness of the policy on cash holding in Nigeria.

Details

African Journal of Economic and Management Studies, vol. 12 no. 2
Type: Research Article
ISSN: 2040-0705

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