|Natalia Victorova||Peter the Great St. Petersburg Polytechnic University, 29, Politechnicheskaya St., St. Petersburg 195251, Russia|
|Elena Vylkova||North-West Institute of Management, branch of Russian Presidential Academy of National Economy and Public Administration, St. Petersburg, 199178, Russia|
|Vladimir Naumov||North-West Institute of Management, branch of Russian Presidential Academy of National Economy and Public Administration, St. Petersburg, 199178, Russia|
|Natalia Pokrovskaia||Saint Petersburg State University, St. Petersburg, 199034, Russia|
The paper explores the
relationship between digital characteristics and tax potential of the
constituent entities of the Russian Federation as factors of sustainable
development of territories and economic growth. The purpose of the study
involves development and testing of a methodology for assessing the level of
digitalization in Russian regions and its relationship with their tax
potential, which has not been sufficiently developed in the available
scientific research by Russian and foreign authors. For this purpose, cluster
and factor analysis were applied with the use of Rstudio, the IBM SPSS
statistics package, and the Anaconda Navigator graphical interface. The
following data were studied: the number of active subscribers of fixed and
mobile access, subscribers of fixed and mobile broadband access as well as
mobile communication devices for all constituent entities of the Russian
Federation. The authors identified the worst and best regions in terms of
mobile and fixed communications. It was concluded that the regions’ readiness
for digital transformation is determined by the general level of their
economies. Significantly larger tax revenues per capita are generated in
regions with a highly developed IT component, which is the basis for solving
the problems of sustainable development of such territories. The economic
situation in a region, its gross regional product, and its tax potential create
the basis for digitalization of each constituent entity of the Russian
Federation. Significant tax revenues per capita are the key to the success of
the territories in the IT sector. Promising areas for further research are: (1)
expansion of the indicators used and time horizons; (2) extrapolation of the
results to other countries and groups of countries; (3) use of the methods and
models that have proven themselves when working with short series, e.g., autoregressive
integrated moving average models.
Digital technologies; Region; Russia; Tax potential; Tax sustainable development
The importance of the problem of national
competitiveness on a global scale is increasing in the context of global
environmental change, political instability, economic crises, social
revolutions, and technological and other challenges. Sustainable regional
development is of great importance for the economic growth of the state (Berawi, 2016; Berawi, 2018), so it is comprehensively
studied in various scientific publications (Carroll and Stanfield, 2001; Kharlamov and Kharlamova, 2019). It
is more flexible and efficient than national
sustainable development, and allows one to capture the features of the economic
et al., 2018) and
ecological potential (Mamraeva and Tashenova, 2020) of the territory more sensitively. At the same time, a
review of previous studies shows that sustainable
regional development is of particular importance for the states whose
territories are characterized by significant diversity, e.g., for China (Zheng
et al., 2021), Indonesia (Rahma et al., 2019), European countries (Prokop et al., 2019; Davidescu et al., 2020), and Russia (Bubnov and Bubnova, 2018; Kudryavtseva et al., 2020).
Region-specific data studies aim to identify determinants of sustainable regional development that can be extrapolated to other territories. For instance, the team of authors led by Gutman et al. (2018) as well as Leksin and Profiryev (2017) highlight indicators of sustainable development of the northern regions of Russia; Gutman and Rytova (2020) characterize the indicators of sustainable development of smart cities, Zaborovskaya et al. (2019) assess the strategy of sustainable development of Leningrad region, etc. The information and technology component is the basis for sustainable development (Hilty et al., 2005; Jovovic et al., 2017), and it has an effect upon all its other components (Avram et al., 2019).
The state of the information technology (IT) component, the information society, and e-government in international rankings of the development of the information society is usually analyzed through the telecommunication infrastructure index (Park and Oh, 2018; Abu-Shanab and Osmani, 2019). This index takes into account the number of internet users, personal computer users, cellular subscribers, fixed telephone subscribers, etc. This approach takes into consideration only the information infrastructure that is the lower level of the information society. It is advisable to take into account the efforts aimed at creating and implementing innovations to study the upper levels of the information society associated with business processes, information systems, and technologies. These efforts are closely related, on the one hand, and are reflected in the tax capacity, the amount of tax revenues generated, tax collection, tax arrears, effectiveness of tax audits, and other indicators characterizing the state of taxation of the territories, on the other hand. For instance, the study by Victorova et al. (2020b) showed intersections in Russian regions’ clustering based on digital and tax parameters. In this case, digitalization affects the tax system, on the one hand, (Ivanova and Selentyeva, 2018), and the tax system itself undergoes digitalization, on the other hand (Sabitova and Khafizova, 2015). Technological procedures are the focus of attention both within the framework of supranational tax regulation (Bradbury and O’Reilly, 2018) and national tax systems (Petersone and Ketners, 2017). The difference in the level of development of the IT component is largely due to the corresponding attractiveness of the territory, the level of investment (Saksonova, 2014; Sinenko and Mayburov, 2019), and the state policy for the development of innovation clusters (Selentyeva et al., 2018).
The COVID-19 pandemic has been a significant challenge to the sustainable development of the territories (Belov, 2021; Pinskaya et al., 2021). However, the need to mitigate its manifestation and create barriers to its spread has stimulated IT development, which in turn may provide an additional foothold for overcoming its long-term effects.
A review of the scientific literature showed that there is not enough research devoted to a comprehensive study of the relationship between the IT component of a territory and its tax potential. Inter alia, this is relevant in relation to the regions of the Russian Federation. Although assessment of such a relationship may not only be scientific in nature but also the applied one, as it can be in demand in the development of state and regional policies.
Hence, the purpose of this study is to develop and test a methodology for assessing the level of digitalization of the Russian regions and its relationship with the tax potential of such territories.
The hypothesis of this study is that regions that are successful in digital development have achieved it due to the fact that they have a greater tax potential than regions lagging behind in the use of IT, since they are able to:·
The study largely confirmed the hypothesis that had been put forward. The level of development of the region’s economy, its gross regional product, and tax potential create the basis for the digital development of a constituent entity of the Russian Federation. Significant tax revenues per capita are the key to success of the territories in the IT sphere, which confirms the first part of the hypothesis. The second part of the hypothesis has not received a clear confirmation, so it needs to be tested in dynamics over a longer time interval.
Summing up the study, we can draw the following conclusions.
The level of society informatization should be assessed not only on the basis of data on development of the telecommunications infrastructure, but efforts aimed at creating and introducing innovations should also be taken into account.
The study may be continued in the future in terms of expanding the time horizons and indicators used.
The experience of assessing the link between the IT and tax component of Russian regions may be extrapolated to other countries with the federal structure.
Despite the fact that the existing statistical compilations represent a large collection of open datasets of the Russian Federation, they contain “raw data” that need to be processed. The number of observations is not enough. Therefore, it is necessary to use proven methods and models when working with short rows, e.g., with autoregressive integrated moving average (ARIMA) models, in the long run.
research is partially funded by the Ministry of Science and Higher Education of
the Russian Federation under the strategic academic leadership program “Priority
2030” (Agreement 075-15-2021-1333 dated 30.09.2021).
Abu-Shanab, E., Osmani, M., 2019. E-Government as a Tool for Improving Entrepreneurship. International Journal of Electronic Government Research, Volume 15(1), pp. 36–46
Avram, A., Benvenuto, M., Avram, C., Gravili, G., 2019. Assuring SME’s Sustainable Competitiveness in the Digital Era: A Labor Policy between Guaranteed Minimum Wage and ICT Skill Mismatch. Sustainability, Volume 11(10), pp. 1–20
Belov, A., 2021. Economic Policy of Japan in the Time of Pandemic. World Economy and International Relations, Volume 65(1), pp. 33–41
Berawi, M.A., 2016. Accelerating Sustainable Infrastructure Development: Assuring Well-Being and Ensuring Environmental Sustainability. International Journal of Technology, Volume 7(4), pp. 527–529
Berawi, M.A., 2018. Managing Sustainable Infrastructure and Urban Development: Shaping a Better Future for ASEAN. International Journal of Technology, Volume 9(7), pp. 1295– 1298
Bradbury, D., O’Reilly, P., 2018. Inclusive Fiscal Reform: Ensuring Fairness and Transparency in the International Tax System. International Tax and Public Finance, Volume 25(6), pp. 1434–1448
Bubnov, V., Bubnova, Yu., 2018. Financial Aspects of Transport Infrastructure Development in Regions. In: Proceedings of the Materials Science, Engineering and Chemistry Web of Conferences, 216, 02002, pp. 1–7
Carroll, M., Stanfield, J., 2001. Sustainable Regional Economic Development. Journal of Economic Issues, Volume 35(2), pp. 469–476
Davidescu, A., Apostu, S., Pantilie, A., Amzuica, B., 2020. Romania’s South-Muntenia Region, towards Sustainable Regional Development. Implications for Regional Development Strategies. Sustainability, Volume 12(14), pp. 1–46
Gutman, S., Rytova, E., 2020. Indicators for Assessing the Development of Smart Sustainable Cities. Communications in Computer and Information Science, Volume 1273, pp. 55–73
Gutman, S., Rytova, E., Kravchenko, V., 2018. System of Regional Indicators for Sustainable Development of the Far North Regions. In: Proceedings of the 31 IBIMA conference, pp. 1843–1852
Hilty, L., Seifert, E., Treibert, R. (Eds.), 2005. Information Systems for Sustainable Development. Idea Group Publishing. 398
Hodzic, S., 2019. Tax Administrative Challenges of the Digital Economy: The Croatian Experience. eJournal of Tax Research, Volume 16(3), pp. 762–779
Ivanova, M., Selentyeva, T., 2018. A Study on the Impact of Taxation Compliance Costs on the Innovative Development. In: Proceedings of the 31 IBIMA Conference, pp. 1305–1308
Jovovic, R., Draskovic, M., Delibasic, M., Jovovic, M., 2017. The Concept of Sustainable Regional Development—Institutional Aspects, Policies and Prospects. Journal of International Studies, Volume 10(1), pp. 255–266
Kharlamov, A., Kharlamova, T., 2019. Sustainable Development of the Russian Economy in the Context of Global Instability. In: Proceedings of the 33 IBIMA Conference, pp. 822–830
Kudryavtseva, T., Kulagina, N., Lysenco, A., Berawi, M.A., Skhvediani, A., 2020. Modeling Cluster Development using Programming Methods: Case of Russian Arctic Regions. International Journal of Technology, Volume 11(4), pp. 667–676
Leksin, V., Porfiryev, B., 2017. Socio-Economic Priorities for the Sustainable Development of Russian Arctic Macro-Region. Economy of Region, Volume 4, pp. 985–1004
Mamraeva, D., Tashenova, L., 2020. Methodological Tools for Assessing the Region's Tourist and Recreation Potential. Economy of Region, Volume 16(1), pp. 127–140
Olatunji, O., Ayodele, K., 2017. Impact of Information Technology on Tax Administration in Southwest Nigeria. Archives of Business Research, Volume 5(9), pp. 139–150
Park, E., Oh, W., 2018. Trust, ICT and Income: Their Relationships and Implications. Online Information Review, Volume 42(2), pp. 268–281
Petersone, M., Ketners, K., 2017. Improvement of Customs and Tax Administration ICT System Performance. Research for Rural Development, Volume 2, pp. 263–269
Pinskaya, M., Steshenko, Y., Tsagan-Mandzhieva, K., 2021. Tax Support During Coronavirus Crisis: Whom to Help? Voprosy Ekonomiki, Volume 5, pp. 129–144
Prokop, V., Stejskal, J., Hajek, P., Kuba, O., 2019. Creating Eco-Innovations for Sustainable Entrepreneurship and Development within European Countries. European Journal of Sustainable Development, Volume 8(3), pp. 183–193
Rahma, H., Fauzi, A, Juanda, B., Widjojanto, B., 2019. Development of a Composite Measure of Regional Sustainable Development in Indonesia. Sustainability, Volume 11(20), pp. 1–16
Rodionov, D., Konnikov, E., Konnikova, O., 2018. Approaches to Ensuring the Sustainability of Industrial Enterprises of Different Technological Levels. Journal of Social Sciences Research, Volume 3, pp. 277–282
Sabitova, N., Khafizova, A., 2015. Information Technologies as a Factor of Evolution of Tax Administration. Mediterranean Journal of Social Sciences, Volume 6 (1S3), pp. 169–173
Saksonova, S., 2014. Foreign Direct Investment Attraction in the Baltic States. Business: Theory and Practice, Volume 15 (2), pp. 114–120
Selentyeva, T., Degtereva, V., Ivanova, M., Mikheyenko, O., 2018. The Competitiveness of Innovation Clusters: Approaches to Assessing and Role of State Cluster Policy. In: Proceedings of the 32 IBIMA Conference, pp. 1706–1709
Sinenko, O., Mayburov, I., 2019. Best Practices in the Development of IT Clusters in the Asia-Pacific Region. In: Proceedings of the 33 IBIMA Conference, pp. 9263–9269
Victorova, N., Rytova, E., Koroleva, L., Pokrovskaia, N., 2020a. Determinants of Tax Capacity for a Territory (The Case of the Russian Federal Districts). International Journal of Technology, Volume 11(6), pp. 1255–1264
Victorova, N., Vylkova, E., Naumov, V., Pokrovskaia, N., Yevstigneev, Y., 2020b. Clustering of Russian Regions: The Relationship between Digital and Tax Components. In: Proceedings of the Pervasive Health: Pervasive Computing Technologies for Healthcare, 56, pp. 1–7
Zaborovskaya, O., Kudryavtseva, T., Zhogova, E., 2019. Examination of Mechanisms of Regional Sustainable Development Strategy as Exemplified by the Leningrad Region. International Journal of Engineering and Advanced Technology, Volume 9(1), pp. 5065–5076