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SocioEconomic Challenges
Article . 2022 . Peer-reviewed
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SocioEconomic Challenges
Article . 2022
Data sources: DOAJ
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The global crisis, manufacturing firms, regulations and taxes

Authors: Halil D. Kaya Halil D. Kaya;

The global crisis, manufacturing firms, regulations and taxes

Abstract

In this study, we focus on how regulations and taxes affect manufacturing firms in Eastern Europe and Central Asia. We examine whether overall regulations became a bigger obstacle to these firms after the 2008-2009 Global crisis. We also examine whether tax inspections became a bigger obstacle after the Global crisis. Besides regulations and tax inspections, we also look into the prevalence of corruption related to tax officials before and after the Global crisis. Using two large datasets (i.e. the BEEPS IV and BEEPS V surveys), we are able to compare the pre-crisis period to the post-crisis period. Our results show that, in this region, post-crisis, senior managers spent more time on dealing with overall regulations which includes tax-related regulations and other types of regulations. Therefore, we can conclude that, post-crisis, regulations became a bigger obstacle to manufacturing firms’ operations. We also find that, post-crisis, there was a significant drop in the percentage of firms that had inspections or meetings with tax officials. Also, post-crisis, each firm on average, had fewer inspections or meetings with tax officials. Therefore, while overall regulations became a bigger obstacle to these firms, tax inspections became a smaller problem. When we examine corruption, we find that there was no significant change in the prevalence of bribes related to tax officials. Before and after the Global crisis, a similar percentage (8-9%) of manufacturing firms had to deal with bribe requests by tax officials. Future studies may focus on other types of regulations which include employment regulations, health and safety regulations, licensing regulations, environmental regulations, and zoning regulations, and the corruption related to these regulations.

Keywords

330, промышленность, регулювання, corruption, bribery, хабарництво, entrepreneurship, BEEPS, корупція, small firm, HM401-1281, малый бизнес, regulations, регулирование, Sociology (General), beeps, Economic history and conditions, підприємництво, HC10-1085, мала фірма, взяточничество, маленькая компания, корупция, small business, промисловість, малий бізнес, предпринимательство

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    popularity
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    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
6
Top 10%
Average
Top 10%
Green
gold