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e-government and Its Impact on the Informal Sector in Turkey
Abstract
The aim of this research is to discuss major implementations of e-goverment in Turkey during the last five years. Specifically, we will review the issues of e-taxation, e-health and e-education. For any goverment, tax revenue is an important issue. In Turkey, efficient tax collection system is needed because of non-collection from its large informal sector. Gerxhani (2004) reported the average size of this sector in developing countries to be as high as 44% of GNP in Africa and 35% in Asia. This sector has also been significant in the Turkish economy. In this study, we look at the informal sector as made up of undeclared labor and unreported income or tax evasion. A main research question here is to look into the impacts of e-government (e-taxation in particular) on informal sector in Turkey and the subsequent impact on the economy as a whole. We expect that the implementation of e-taxation has significantly increased revenues from tax collection.
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