TY - JOUR

T1 - Determinants of Tax Capacity for a Territory (The Case of the Russian Federal Districts)

AU - Victorova, Natalia

AU - Rytova, Elena

AU - Koroleva, Lyudmila

AU - Pokrovskaia, Natalia

N1 - Funding Information: This research work was supported by the Academic Excellence Project 5-100 proposed by Peter the Great St. Petersburg Polytechnic University. Publisher Copyright: © 2020 xx Copyright: Copyright 2020 Elsevier B.V., All rights reserved.

PY - 2020

Y1 - 2020

N2 - In this article, the tax capacity of the territories in the Russian Federation was studied. The study was conducted based on the aggregation for eight federal districts, including data on 85 subjects of the Russian Federation from 2009–2018. To determine the factors that have the strongest impact on tax capacity at the subnational level, an econometric analysis of the panel data was performed using the Stata program. In the development of the model, tax share was used as the resulting indicator. The article analyzes the impact on tax share of 16 macroeconomic indicators that reflect the human and financial potential of taxpayers in a federal district, the investment attractiveness and innovative activity of the territory, as well as global financial and economic regulators. The hypothesis that due to significant differences in the socioeconomic development of territories, the determinants of tax capacity will differ by federal districts, was confirmed. However, it was proved that such differences are not related to the specific features of socioeconomic development inherent in the constituent entities of the Russian Federation. Among the selected factors in pooled regression, fixed effects, and random effects models, the level of employment of the population and the financial results of companies were considered the most significant. The significance of the level of employment of the population could be determined by a clear deficit in gross fixed capital accumulation against the background of a high degree of depreciation of fixed assets and the share of manual labor.

AB - In this article, the tax capacity of the territories in the Russian Federation was studied. The study was conducted based on the aggregation for eight federal districts, including data on 85 subjects of the Russian Federation from 2009–2018. To determine the factors that have the strongest impact on tax capacity at the subnational level, an econometric analysis of the panel data was performed using the Stata program. In the development of the model, tax share was used as the resulting indicator. The article analyzes the impact on tax share of 16 macroeconomic indicators that reflect the human and financial potential of taxpayers in a federal district, the investment attractiveness and innovative activity of the territory, as well as global financial and economic regulators. The hypothesis that due to significant differences in the socioeconomic development of territories, the determinants of tax capacity will differ by federal districts, was confirmed. However, it was proved that such differences are not related to the specific features of socioeconomic development inherent in the constituent entities of the Russian Federation. Among the selected factors in pooled regression, fixed effects, and random effects models, the level of employment of the population and the financial results of companies were considered the most significant. The significance of the level of employment of the population could be determined by a clear deficit in gross fixed capital accumulation against the background of a high degree of depreciation of fixed assets and the share of manual labor.

KW - Russian federal districts

KW - Subnational budget

KW - Tax capacity

KW - Tax effort

KW - Tax share

UR - http://www.scopus.com/inward/record.url?scp=85098486120&partnerID=8YFLogxK

U2 - 10.14716/ijtech.v11i6.4421

DO - 10.14716/ijtech.v11i6.4421

M3 - Article

AN - SCOPUS:85098486120

VL - 11

SP - 1255

EP - 1264

JO - International Journal of Technology

JF - International Journal of Technology

SN - 2086-9614

IS - 6

ER -