Search Results (49)

This study aims to examine gaps in the current AML framework related to cryptocurrency and digital assets. We focused on money laundering typologies involving the conversion of illicit funds into clean value through cryptocurrency-based purchases of vouchers, gift cards, and other non-traditional instruments. We examined the existing literature on cryptocurrency and digital assets to identify gaps in detection and classification by mapping platform features and transaction pathways using an original dataset. The work adopts the Placement Layering Integration model. It conceptualises a laundering pathway that operates outside regulated intermediaries via crypto acquisition, voucher purchases on low Know Your Customer (KYC) platforms, redemption into goods, and informal resale for cash. The analysis revealed that most platforms required minimal verification for transactions, and many supported privacy coins that can hide the flow of funds from standard detection techniques. These features create conditions for cross-border money transfers that may fall outside law enforcement oversight. Such mechanisms can lead to undeclared remittance and potential tax evasion. This study contributes to the understanding of cryptocurrency related financial crime within broader money laundering typologies. It contributes to AML frameworks by identifying a shadow payment architecture, proposing targeted reforms to extend AML coverage to voucher intermediaries, and highlights areas for future research and policy improvements. Full article

In the digital economy era, computing power, as a novel factor of production, serves as a vital engine for driving high-quality economic development. Building upon China’s traditional 42-sector input–output table, this paper incorporates computing power networks as a new sector to construct a 43-sector dynamic input–output (IO) model. Based on this framework, a Dynamic Stochastic General Equilibrium (DSGE) analysis framework is constructed to systematically reveal the dynamic transmission mechanism of computing power within industrial linkages and capital accumulation. From an energy perspective, energy consumption is implicitly captured through carbon emissions and energy structure, which together reflect the scale, efficiency, and composition of energy use in computing power networks. The findings show that the optimal computing power allocation follows a temporal evolution pattern from the service sector to the manufacturing sector, with ICT manufacturing’s computing power quota reaching 31% by 2030. An investment inflection point occurs in 2026, aligning with the digital infrastructure cycle of China’s 14th Five-Year Plan. The “Eastern Data, Western Computing” strategy reduces unit carbon emissions from computing power by 41%. Policy simulations demonstrate that R&D tax credits generate a 2.9-fold multiplier effect through industrial linkages, boosting GDP by 2.3%. The integrated IO-DSGE framework developed in this study provides a quantitative tool for the full-cycle management of “construction–application–regulation” in computing power networks. It holds significant theoretical value and practical implications for enhancing resource allocation efficiency and promoting green, climate-friendly development. Full article

This study aims to examine the impact of taxation on the adoption of digital finance in Africa and to assess the extent to which governance quality moderates this relationship. Using panel data for 54 African countries over the period 2007–2023 and applying the two-step System GMM, we find that taxes on goods and services—especially excise duties—exert a positive and statistically significant effect on the share of the population adopting mobile money. More importantly, this positive effect is strongly amplified in countries with better governance quality. Interaction terms reveal that government effectiveness, control of corruption, and voice and accountability significantly moderate the tax-adoption nexus, making taxation more conducive to digital finance development in countries with stronger institutions. These results remain robust across alternative tax measures, sample restrictions, lag structures, and additional controls. By distinguishing between general tax capacity and sector-specific taxes on digital financial services, this study reconciles contrasting findings in the literature and highlights a complementary relationship between fiscal policy and institutional quality. The findings suggest that strengthening governance represents a more effective strategy for simultaneously expanding the tax base and promoting digital financial inclusion in Africa. Full article

This paper examines how value-added tax (VAT) reforms affected recorded point-of-sale (POS) spending in Saudi Arabia’s restaurant, café, and food service sector during a period of rapid payment digitalization. Two policy shocks are analyzed: the introduction of a 5% VAT in January 2018 and the increase to 15% in July 2020. Using monthly official POS data from January 2016 to January 2024, the study applies an interrupted time-series framework. Baseline estimates are obtained using Generalized Least Squares (GLS) with AR (1) correction. In contrast, seasonal SARIMAX and Error Correction Model (ECM) specifications are used as robustness checks and to distinguish short-run from long-run dynamics. Controls include food and beverage price indices, headline inflation, and COVID-19 disruptions. Results show statistically significant positive level shifts in recorded POS sales after both VAT reforms, with larger measured effects after the 2020 increase. However, the evidence suggests that these changes primarily reflect formalization of transactions, migration toward electronic payments, improved reporting compliance, and intertemporal expenditure timing rather than persistent growth in real demand. Post-reform trend coefficients indicate gradual normalization in subsequent months. ECM estimates suggest that approximately 56% of short-run disequilibrium is corrected within one month. Findings are robust across alternative specifications. The paper contributes new evidence from the Gulf region by showing that retail transaction indicators may overstate real consumption responses when tax reforms coincide with rapid financial digitalization. From a sustainability perspective, the findings highlight the role of digital financial systems and modern tax administration in improving economic transparency, strengthening fiscal sustainability, enhancing formal-sector integration, and supporting the institutional transformation objectives of Saudi Vision 2030. The results imply that fiscal-policy evaluations should jointly account for tax administration reforms and changes in payment technology. Full article

This study examines how digital tax transformation contributes to fiscal sustainability through the interaction of technological, organizational, and institutional factors. Using a systematic literature review (SLR), the study synthesizes evidence on digital tax administration to identify key drivers of transformation. The findings indicate that digital technologies improve tax compliance, administrative efficiency, and transparency. However, technological adoption alone is insufficient to ensure sustainable outcomes. Organizational capabilities play a critical role in translating digital investments into performance, while institutional environments shape the effectiveness of reform implementation. In addition, temporal dynamics highlight that early policy and institutional decisions influence long-term transformation outcomes. These findings suggest that successful digital tax reform requires not only technological investment but also strong organizational capacity and supportive institutional frameworks. Policymakers should prioritize integrated reform strategies, strengthen human capital, and ensure regulatory alignment to achieve sustainable fiscal outcomes. This study contributes by providing an integrated framework that explains how digital transformation supports sustainable revenue mobilization and offers practical guidance for digital government reform. Full article

Under China’s dual-carbon goals, Green Finance Policy (GFP) and the Environmental Protection Tax Policy (ETP) are key tools for firm-level green transformation, yet their joint micro-effects remain underexplored. Using Shanghai and Shenzhen A-share listed firms from 2011–2022, this study treats the overlapping rollout of the Green Finance Reform and Innovation Pilot Zones and the Environmental Protection Tax reform as a staggered quasi-natural experiment and applies a multi-period DID to identify their synergistic effect on Corporate Green Technology Innovation. Results show that each policy alone promotes green innovation and that their coordination further strengthens the effect. The synergy operates mainly by easing financing constraints and increasing R&D investment. The effect is stronger among firms with better resources, governance, and digitalization, and in regions with stronger institutional environments; it is also more evident in non-heavy-polluting and non-manufacturing sectors. While the policy mix raises both innovation quantity and quality, it does not significantly improve total factor productivity, indicating a “weak Porter effect.” These findings provide micro-level evidence on GFP–ETP synergy and inform the refinement of green finance, environmental tax design, and firm-level green transition policies. Full article

Sub-Saharan African health systems face critical funding challenges due to declining foreign aid, mounting debt and increasing disease burdens. Traditional financing mechanisms have proven inadequate, necessitating the exploration of innovative domestic revenue mobilization (DRM) strategies. This paper contributes to the health economics literature by examining the use of innovative tax models as DRM strategies for sustainable health financing in Sub-Saharan Africa, using the fiscal space for health framework. This narrative review synthesizes peer-reviewed articles, policy documents, and grey literature published between 2010 and 2025. The review identifies four promising innovative models: health taxes (tobacco, alcohol, sugar-sweetened beverages), environmental levies (pollution, carbon, plastic), digital taxation (digital services taxes, mobile money taxes, Value Added Tax (VAT) on digital services) and resource extraction taxes. The evidence demonstrates significant revenue generation potential while achieving public health and environmental co-benefits. However, critical implementation challenges persist: weak administrative capacity, poor governance quality, equity concerns and extensive informality and economic diversity. The paper recommends strengthening tax administration through digital infrastructure investment and capacity building, implementing progressive tax design with targeted exemptions, enhancing transparency and linking tax revenue to health service delivery, and tailoring reforms to country-specific contexts while learning from regional experience. Full article

Against the backdrop of deepening coordinated policy governance, the systemic synergy between digitalization and green transformation policies and their impact on corporate ESG performance has become a key issue requiring urgent exploration. Unlike existing studies that focus on the effects of individual policies, this paper adopts a policy system synergy framework to systematically investigate the impact of the coordinated implementation of big data administrative reform and low-carbon city pilot policies on corporate ESG performance. Using a sample of Chinese A-share listed companies from 2010 to 2022, this study applies a multi-period difference-in-differences (DID) method for empirical analysis. The findings show that the systemic synergy between digital and green policies significantly enhances corporate ESG performance, with this promoting effect substantially stronger than that of single pilot policies. Further causal re-identification using a double machine learning (DML) approach verifies the robustness of the baseline conclusion. Heterogeneity analysis indicates that the synergistic effect of digital and green policies is more pronounced in firms with higher levels of digital transformation, greater patient capital, and heavier tax burdens. Mechanism tests reveal that digital–green policy synergy improves ESG performance by enhancing external supervision from government, society, and the market, increasing green government subsidies, and incentivizing firms to engage in green innovation. At the same time, policy system synergy also reduces firms’ perceived uncertainty regarding economic policies and stabilizes their expectations, further enhancing ESG performance. This paper extends the research on the determinants of corporate ESG performance from the perspective of system synergy governance, providing new empirical evidence for understanding the interaction mechanisms between digital governance and green transformation policies. Full article

Digital tax reforms are implemented through staged, publicly announced milestones, yet policymakers rarely have timely indicators of whether these signals mobilize information-seeking and whether such demand can be anticipated for operational planning. We analyze monthly Google Trends series for Greece’s myDATA/e-invoicing rollout (2016–present) using preregistered event study models that separate step changes from post-event trend shifts with HAC-robust inference, and we evaluate 1–3-month predictive performance via rolling-origin cross-validation against a seasonal-naïve benchmark. Search-based attention shifts appeared most clearly in application-related queries: invoicing app terms spike around visible rollout phases (≈+34 to +38 index points over six months) and decline around VAT–myDATA alignment (≈−34 to −43). Ecosystem attention (the “Electronic invoicing” topic) exhibits large, opposite-signed movements (≈−53 around public-sector expansion; ≈+46 around VAT alignment), whereas platform terms show smaller and less regular responses; a back-office milestone produces no detectable change. In out-of-sample tests, event-aware regressions improve short-horizon accuracy for platform terms (≈40–50% MAE reduction at one month; ≈18–32% at two to three months), with series- and horizon-dependent results elsewhere. Overall, the evidence supports using search activity as an intermediate planning signal—informative about when and where guidance demand concentrates but not evidence of compliance. Full article

This paper explores the relationship between fiscal decentralization, green finance, and the digital economy in driving sustainable development, using a balanced cross-country panel dataset spanning 2014–2022, for 29 European countries. Employing dynamic panel estimation techniques, including system generalized method of moments (GMM), the research investigates how fiscal decentralization, green finance, and the digital economy (each of them individually and through interaction mechanisms), dynamically shape sustainable development performance in the presence of endogeneity and temporal persistence. The findings reveal strong inertia in sustainable development, which depends on its previous level. Fiscal decentralization has complex effects: revenue autonomy supports sustainability, whereas expenditure autonomy may undermine it, suggesting differences in how resources are used efficiently at the local versus central levels. Digitalization acts as a catalyst, boosting the effectiveness of environmental taxes and enhancing local spending outcomes. However, if fiscal administrations are not digitally integrated, digitalization may weaken the benefits of decentralized revenues. This study advances the literature by integrating fiscal, financial, and digital views, providing new insights into policy coordination. Full article

Fiscal and tax new media has emerged as a new channel for government-enterprise engagement, linking policy communication with firms’ sustainability-oriented decisions. This study hand-collects the launch status of official microblog accounts for finance and taxation departments in China’s prefecture-level cities. This paper combines these data with firm-level observations on China’s green enterprises from 2008 to 2022, and clearly defines the sample of green enterprises. Defining the sustainable spirit among green entrepreneurs from the perspective of entrepreneurship and innovation. This is to estimate how government communication and policy signaling shape firms’ sustainability-oriented behavior. Treating the introduction of official fiscal and tax new media as a quasi-natural experiment, we apply a staggered difference-in-differences design to identify its effect on green entrepreneurs’ sustainable spirit. The study finds that launching official fiscal and tax new media significantly stimulates the sustainable spirit of green entrepreneurs. Mechanism tests suggest that the effect operates through improvements in information infrastructure and governance capacity, including higher internet penetration, reduced fiscal and tax irregularities, and stronger digital governance. Particularly in regions with weaker government–business relations, more integrated administrative systems, lower fiscal pressure, and higher government subsidies, the promoting effect is more significant. Overall, the findings offer policy implications for strengthening the effectiveness of public digital communication and for fostering green entrepreneurs’ sustainable spirit. Full article

Environmental tax is a key market-based instrument for promoting sustainability and reshaping corporate strategy. Using the panel data of Chinese listed firms from 2010 to 2023, this study employs text mining to measure digital transformation and examines the impact of environmental tax on corporate digitalization. The results show that environmental tax significantly promotes digital transformation. The mechanism analyses reveal that green technology innovation and ESG performance serve as important transmission channels. Furthermore, the effect is positively moderated by regional marketization, environmental information disclosure, and low-carbon city policies. The heterogeneity analyses indicate stronger effects in economically developed regions and firms with greater resource endowments. The additional analysis demonstrates that environmental tax enhances both total factor productivity and green governance performance through accelerating digital transformation, achieving a synergistic green–digital transition. This study provides empirical evidence on how market-based environmental policies can foster corporate digital transformation as a pathway toward sustainable development. Full article

National big data comprehensive pilot zones (BDCPZs) are key platforms for piloting and implementing big data policy. Additionally, the exploration of their impact on carbon unlocking efficiency and its mechanisms holds significant value. Here, using panel data of 281 prefecture-level cities from 2007 to 2023, we developed a staggered difference-in-differences (DID) model for the systematic investigation of the effects of big data policy on carbon unlocking efficiency and its mechanisms. Our findings demonstrate that BDCPZs significantly enhance carbon unlocking efficiency via four pathways: (1) the rationalization of industrial structure; (2) the optimization of energy structure; (3) the improvement of digital technological innovation; and (4) the application of artificial intelligence technology. On the other hand, heterogeneity testing revealed that the positive effect of the establishment of BDCPZs on carbon unlocking efficiency is more pronounced in cross-regional pilot zones and non-industrial tax-dominated areas. Finally, we also found that the establishment of BDCPZs has significant spatial spillover effects on the carbon unlocking efficiency of surrounding cities. It will be necessary to further strengthen the systematic planning of BDCPZs to enhance carbon unlocking efficiency. Full article

This paper examines the regressive nature of the value-added tax and proposes an integrated framework combining a uniform value-added tax rate with progressive, digitally administered rebates. The model was performed using household- and firm-level microsimulations with Monte Carlo methods. It demonstrates that equity can be reached without revenue neutrality being undermined. Simulation results for a calibrated 2024–2025 economy show the proposed rebate structure reduces the effective tax burden on the lowest income quintile from 13.5% to 5.4% of income, delivering a net cash benefit of USD 786.88 and a welfare gain of 6.10%. The policy is projected to generate a robust average VAT revenue of USD 17.44 million, with a 97.8% probability of a positive fiscal impact, while reducing the poverty rate by 2.6% and lowering inequality (Gini coefficient of utility to 0.199). The outcomes present a welfare gain for the poor, a small firm-level effect, and a decrease in poverty and inequality. The results suggest a feasible policy route towards a more equitable tax system, thus promoting indirectly to the United Nations Sustainable Development Goals (SDGs), specifically SDG 8 (decent work and economic growth) and SDG 10 (reduced inequalities). Full article

This article examines labor market dynamics in Bulgaria, Italy, and the United Kingdom by integrating demographic pressures, wage and labor cost adjustment, redistribution mechanisms, inequality outcomes, and digital readiness into a single comparative framework. This study first applies hierarchical clustering to a harmonized EU country panel for 2017–2024, using GDP per capita in PPS, average annual wage, and unemployment rate to position the three countries within the European convergence space and income–labor cost groupings. The results show that Bulgaria belongs to a low-income, fast-converging group, with nominal wages and hourly labor costs more than doubling, strong real-wage growth from a low base, and an improving price level index. At the same time, unemployment fell to below the EU average, yet income inequality remains persistently high. Italy represents a high-income but slow-growing labor market, in which real wages have declined, and labor costs per hour remain above the EU mean with a significant non-wage component. Unemployment remains relatively elevated, indicating divergence in workers’ purchasing power despite high income levels. The UK has labor costs in the mature high-income range, low unemployment, and the lowest tax wedge for low-wage workers, but with relatively high and volatile inequality. This study shows that wage dynamics, labor cost composition, and tax–benefit structures jointly mediate the translation of macroeconomic performance into household outcomes, generating distinct policy trade-offs across the three labor market configurations. Digital indicators further suggest that income level is not a sufficient predictor of digital engagement and that the observed aggregate labor market trends do not indicate a sharp employment contraction contemporaneous with the diffusion of technical innovations, such as generative AI. Full article