AUDITING THE COUNTRY-LEVEL TAX COMPLIANCE SITUATION: RECENT FINDINGS FOR THE CASE OF ROMANIA

PurposeThis study reviews the literature on shadow and gig economy models to highlight their effects on entrepreneurship and business development in emerging markets. In particular, it examines how these models create opportunities for income generation and employment while operating outside formal regulatory frameworks and also assesses the regulatory and socio-economic factors that influence their success.Design/methodology/approachUsing a systematic literature review (SLR) following the PRISMA protocol, 33 relevant and impactful articles published between 2000 and 2024 were analysed. The study synthesises findings on shadow and gig economy practices to answer key research questions about their role in fostering entrepreneurship and innovation.FindingsThe results reveal three key findings. First, the models of the gig and shadow economies encourage economic participation and entrepreneurial innovation, especially among underrepresented groups, but they also present difficulties like job insecurity and unofficial working conditions. The success of these models is also greatly influenced by socio-economic and regulatory factors, with adaptive frameworks enhancing worker protection and innovation. Third, measures like collective efforts, investments in digital infrastructure and flexible regulations are essential for both economic models to grow sustainably.Practical implicationsPolicymakers and stakeholders should create clear regulatory frameworks that protect workers’ rights while promoting business innovation. Investments in technology, digital infrastructure and inclusive skills development can improve participation and productivity. Collaborative initiatives are critical for mitigating risks and ensuring ethical practices in the shadow and gig economies.Originality/valueUnlike previous conceptual and theoretical studies, this study offers new perspectives through a clear conceptual framework that explains the dual role in entrepreneurship and business development. It also provides useful information for scholars and policymakers in emerging markets.

Over the past decade many developments have taken place in the field of automation of cars, trucks and public transport. The penetration rate of Level 2 partially automated vehicles in mixed traffic is increasing, Level 3 conditional automation is now supported by legislation, and different experimental and commercial applications of Level 4 high automation in mixed traffic exist. This shows that automated driving developments should be considered when making decisions about investments in physical and digital infrastructure. However, there are still many uncertainties regarding future penetration rates, the level of connectivity, the operational design domain, and the expected impacts of automated driving. This paper proposes four scenarios for automated driving developments in the Netherlands in 2040 and 2060: 1) Late transition, 2) Automated vehicles on main roads, 3) Car-topia, and 4) Share-topia. To derive these scenarios, a new “switchboard” method is introduced in which multiple driving forces for automated driving can be varied. The main driving forces were identified based on expert surveys. For each scenario, a modelling approach is used to compute the impact of automated driving on vehicle kilometres driven and congestion. The switchboard method offered more flexibility than existing scenario methods. The model-based impact assessment provided more conservative and probably more accurate insights into the expected impacts of automated driving on vehicle kilometres driven and congestion than expert estimates from the literature. The results show that in all scenarios automation leads to an increase in the number of trips, vehicle kilometres driven and congestion. In the scenarios with autonomous vehicles, congestion is expected to increase up to 17%. The higher the penetration rates of connected automated vehicles, the smaller the increase in congestion (1.5% -11%). The results indicate that investments in digital infrastructure are needed to prevent capacity reduction due to autonomous driving. The scenarios “car-topia” and “share-topia” may require additional physical infrastructure on motorways and regional roads.

Labor economics, a cornerstone of modern economic research, examines the dynamics of labor markets, including supply and demand, wage determination, and employment levels. In the digital era, this field has gained unprecedented importance as technological advancements reshape traditional labor models. Digital transformation enhances productivity and operational efficiency but also disrupts employment structures, skill requirements, and wage distribution across industries. The digital economy presents both opportunities and challenges. While it can boost wages and reduce income inequality through productivity gains, it also demands new skills and flexible employment models, potentially leading to structural labor market shifts. Automation and artificial intelligence (AI) are displacing low-skilled workers in sectors like manufacturing and retail while creating opportunities in high-skilled areas such as data analysis, software development, and digital marketing. This shift underscores the need for continuous upskilling and investments in human capital. Remote work and the gig economy have emerged as dominant trends, accelerated by the COVID-19 pandemic. By 2025, an estimated 22% of the U.S. workforce will work remotely, with hybrid models becoming the norm. The gig economy, encompassing freelancing and contract work, is also expanding, with 36% of U.S. workers participating in 2024. While these trends offer flexibility, they also raise concerns about job stability, social protection, and work-life balance. Trade unions face new challenges in adapting to the digital economy. The rise of automation and gig work complicates traditional unionization efforts, but unions are leveraging digital tools to organize workers, advocate for data rights, and promote fair labor practices. Initiatives like digital skills training and tailored benefits for gig workers are helping unions remain relevant in a rapidly changing labor landscape. Income inequality remains a pressing issue, as the digital economy disproportionately benefits high-skilled workers and platform owners. Bridging the digital divide and ensuring equitable access to technology and education are critical for reducing disparities. Policymakers must implement redistributive fiscal policies, support small and medium-sized enterprises, and invest in digital infrastructure to promote inclusive growth. In conclusion, the digital economy is reshaping labor markets, creating both opportunities and challenges. Addressing these changes requires a comprehensive approach, including investments in education, social protection, and digital infrastructure. By fostering adaptability and inclusivity, stakeholders can navigate the complexities of the digital era and ensure sustainable economic growth.

With the rapid development of the Internet and digital technology, digital infrastructure has become an important part of urban infrastructure. Many cities are enacting smart policies to promote the development of digital technology infrastructure. However, what are their mechanisms? There is currently a shortage of literature on the subject. This paper tried to solve this problem and used China as an example. Using panel data from cities in China, this paper used the spatial multiple-period difference-in-difference (SDID) method to investigate the impact of smart city policy (SCP) on digital infrastructure. First, we found that SCP significantly promotes the construction of digital infrastructure, with strong positive spatial spillover effects. This result remained valid after a series of rigorous robustness tests. Second, we discovered that the indirect effects of policy implementation outweigh the direct effects. Furthermore, smart city development enhances local government investment in digital infrastructure, attracts more high-tech enterprises, and consequently drives improvements in urban digital infrastructure levels. Lastly, we observed that the effectiveness of smart city policies is stronger in cities with good fiscal conditions, strong economic development, and a thriving digital economy. This research will not only enrich research on smart cities but also provide policy recommendations for strengthening digital infrastructure.

This paper delves into a conceptual review of the vital role of innovative approaches in tax enforcement and compliance for achieving sustainable economic development in Nigeria. Amidst evolving global economic landscapes, the integration of cutting-edge technologies such as blockchain, data analytics, digital platforms, and real-time reporting has emerged as a powerful catalyst for transforming the nation's tax system. These innovations have significantly streamlined tax processes, facilitating easier tax compliance for individuals and businesses. They have also fostered transparency and trust within the tax system by ensuring secure and tamper-proof tax records and enhancing voluntary compliance. The implementation of these innovative strategies presents a unique opportunity to bolster Nigeria's revenue collection, thereby contributing to sustainable economic development by funding critical public services, infrastructure projects, and socio-economic development initiatives. The paper concludes that the adoption of innovative approaches in tax enforcement is pivotal for sustainable economic development in Nigeria. By promoting compliance and transparency, these technologies contribute to a robust and reliable revenue base essential for funding public services and infrastructure projects. This paper, therefore, recommends investment in digital Infrastructure, implementation of real-time reporting and data analytics, utilisation of data analytics and artificial intelligence and leverage on mobile payment systems.

The research is about the role of state regulation in development of Ukraine’s IT sector, and about optimization strategies and policy recommendations. The study explains the problem of inconsistent regulatory impacts on the IT sector growth which is worsened by bureaucratic barriers, compliance costs and instability of policies. The research employs panel data drawn from 2020 to 2024 in order to determine the effect of tax incentives, financial assistance, compliance costs, regulatory quality, digital infrastructure and educational investment on IT sector growth and efficiency. The paper utilizes results from the fixed effects, random effects, and generalized method of moments econometric models and results are robust with respect to sensitivity analysis using diagnostic tests, to explore the link between state regulation and IT sector performance. This suggests that improved tax incentives and financial support creates better environment for IT sector growth, while reduced compliance costs and better quality of regulation helps achieve better operational efficiencies. Furthermore, investments in digital infrastructure as well as education enhance innovation and productivity. It is shown that the growth of the IT sector was influenced by moving tax incentives from 2,5 billion UAH in 2020 to 4,5 billion UAH in 2024, which led to an increase in the annual growth rate from 7,2% to 11,2%. Financial support also grew from 1,2 billion UAH up to 2,3 billion UAH, thus supporting the startup innovation and expansion. Moreover, lower compliance costs, decreased from 4,5% to 3,6%, increased operational efficiency, and the Regulation Quality Index rose from 3,2 to 4,3 and helped create a more business friendly environment. Further enabling innovation capacity and productivity was digital infrastructure and IT education simply growing from 0,8 billion UAH to 1,2 billion UAH. It also discusses how stable policy enables long term strategic planning from an investor’s perspective and how it builds investor confidence. Based on the implications of this research, policy recommendations are formulated on three evidence-based dimensions: optimizing tax incentives, increasing financial support, and reducing compliance costs; while on the other hand investing in digital infrastructure and IT education. The paper concludes that Ukraine's IT sector has a sustainable growth and global competitiveness, however, such a rate is possible provided there is a stable policy environment and strategic state regulations. This study also contributes to academic discourse on state regulation in digital economy through widening the scope of applied research and suggests further practical approaches for the industry stakeholders and state policy makers.

Universities have been formed in the era of communication through the «printed text», and the digital revolution taking place in the world in the last decades creates new opportunities and challenges for them. Digital technologies form a fundamentally new basis for the production, storage and transmission of knowledge; they lead to a profound transformation of all types of communication, content and organization of thinking and activity. In order to manage higher education development in Russia, it is important to understand 1) which place digitalization has among development priorities of universities, 2) whether their strategies produce the leadership in production and use of modern digital technologies or there is a risk that universities will become outsiders in this field. The article presents the results of a large-scale expert survey (1481 experts from 65 universities) on the prospects and priorities of the development of universities in Russia. Key research questions are: 1) which place digitalization takes among other large-scale changes («trends») topical for the modern university; 2) which place «digital challenge» occupies among other challenges? 3) do the actual priorities of Russian universities management reflect the significance of the «digital challenge»? According to the survey, the «total digitalization» of the economy and society will be the key trend in the period until 2035. Consequently, the «digitalization challenge» (the need to move towards the large-scale use of digital technologies in education and university management) will be the most significant one for universities. The experts believe that investment in digital infrastructure should feature prominently in the system of development priorities and have quick impact. However, the survey shows a certain gap between the «due» (according to the experts) and the actual structure of the priorities for the development of Russian universities. The main trend of changes and the challenge for universities is «digitalization», while among the actual priorities of investment in development, «PR and promotion of the university», «cooperation with the Ministry of Education and Science and federal agencies» are at the first positions, and investment in digital infrastructure is only at the third position. Even lower is the actual priority of such important areas of investment as the motivation of teachers and students («investment in activity»); international cooperation; cooperation with business; educational technology of the new generation; attraction of «new students»; attraction of «new personnel»; starting the exploratory research; support for scientific schools. Among the various elements of higher education reform in Russia, the «digitization» of the educational process is viewed by experts as the most promising direction, which is already showing its effectiveness. The survey results show the need for amending the strategic priorities of Russian universities. While maintaining a high priority of investment in digital technologies, it is necessary to raise the priority of investment in human capital, i. e. in «new personnel» (leading scientists, practitioners with unique experience, talented young scientists and teachers, etc.), stimulating the initiative of teachers, staff and students and their involvement in development process.

PurposeThis study evaluates the role of digital infrastructure and policy initiatives in Malaysia’s economic growth, focusing on the Digital Economy Performance Indicator (DEPI) from 2017 to 2021.Design/methodology/approachThrough the implementation of national initiatives like the Digital Free Trade Zone (DFTZ) and the National Fiberisation and Connectivity Plan (NFCP), Malaysia has emphasized the importance of digital transformation for economic resilience and global competitiveness. The DEPI framework assesses key dimensions—connectivity, affordability, infrastructure, human capital, and digital technology integration—using the entropy weight coefficient method to ensure objectivity.FindingsFindings suggest that while Malaysia has made notable progress in digital connectivity and infrastructure, challenges persist in affordability, especially in rural areas. The development of human capital, particularly digital literacy, also remains crucial for long-term sustainability.Practical implicationsThe research concludes that further investment in digital infrastructure and skills development is essential for Malaysia to thrive in the global digital landscape.Originality/valueThis study offers insights for policymakers to address the digital divide and foster a more inclusive and competitive digital economy.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2024-0826

This study examines the impact of the COVID-19 pandemic on the digital transformation landscape in the Kingdom of Saudi Arabia. Its main goal is to find out to what extent the pandemic has spurred digital technology adoption. During the pandemic, Saudi Arabia has seen a rapid transition to digital solutions in various areas such as remote working, online education and e-commerce. And telemedicine. This study examines the factors that contribute to this transition and assesses its long-term consequences. A quantitative, inductive and explanatory study design was selected for this study to analyze primary data collected from 247 respondents working in official UK organisations, ministries and agencies. Saudi Arabia through a survey questionnaire page. Statistical analysis tools were used to evaluate the conclusions of the results. Key findings highlight the central role of government investments in digital infrastructure and highlight the challenges of digital literacy and data security. Ultimately, this study acknowledges that the pandemic has acted as a catalyst, reshaping traditional business models and service delivery. To build on this momentum, the recommendations call for sustainable investment in digital infrastructure, increasing digital literacy, and encouraging innovation through collaborative and responsive partnerships. Actively on network security issues.

This study investigates the variation in attitudes across stakeholders towards investments in the digital economy. Using semi-structured interviews to identify attitudes about the spatially evolving socioeconomic importance of the digital economy in New Zealand, we identified seven distinct yet partially overlapping concerns that prioritise preferences for digital investment. A key finding is that there are important asymmetries in stakeholders' narratives and epistemological foundations that currently align to collectively strengthen resolve to invest in digital infrastructure and training, but this alignment may splinter in future. Some stakeholders saw internet access as coalescing social economy, and there were concerns that some people and some places would get left behind if access is not rolled out uniformly and as a priority. There were disagreements about who will prosper, who will get left behind, who should pay for upgrading digital skills, the extent that investments were connected with wellbeing and identity, whether fake news was significant, and the longevity of the impact of digital economy investments. This study contributes to theory by demonstrating that practically-relevant, socially-informed policy decisions can be underpinned by collective efforts that draw on heterogeneous narratives and multidimensional understandings.

Firms that operate in the telecommunications industry often have to make large and risky investments in digital infrastructure. This paper examines how firm size affects the incentive to invest in infrastructure projects in industry environments that incur substantial network externalities. We suggest that, in the presence of network externalities, a firm's rate of growth first declines and then increases with the size of its user base. An implication of this result is that firms may benefit from making investments in emerging digital infrastructure early enough to achieve a substantial user base and to gain that user base before other firms' investments pre-empt them. The results mean that firms that undertake earlier successful investment may achieve preemption very quickly. The sources of network externalities contribute to the incidence of strategic alliances in network industries, particularly when coupled with the pressures of technical uncertainty. Copyright 1998 by Oxford University Press.

Sustainable rural development is critical to improving the economic, social and environmental well-being of rural communities. However, challenges such as inadequate infrastructure and limited access to essential services impede progress. Information and Communication Technology (ICT) offers innovative solutions to overcome these barriers. This research aims to explore the role of ICT in sustainable rural development, focusing on its applications in the agriculture, health, education and governance sectors. The research used a mixed approach, combining policy analysis, stakeholder interviews, case studies, as well as secondary data analysis and spatial modeling. Data were collected through surveys and GIS data analysis to identify the role of ICTs in sustainable rural development. Findings show that the use of ICTs, such as GIS and mobile applications, has improved land use planning and resource management. About 80% of respondents have access to mobile phones, but only 50% have internet access, suggesting barriers to digital adoption. While ICTs have the potential to enhance rural development, challenges such as digital literacy and infrastructure deficiencies remain a barrier. Strategic investments and collaboration between stakeholders are needed to maximize the impact of ICTs. This research demonstrates that ICT integration in rural planning can foster sustainable development. Although significant challenges exist, recommendations including investment in digital infrastructure and digital literacy training programs are essential to optimize the benefits of ICT for rural communities. Strategic implementation of such recommendations can transform rural communities towards a more sustainable and resilient future.

In the modern era, digital infrastructure plays a vital role in the economic development of a country and is recognised as a key contribution factor for fourth industrial development. Despite the increasing dependence of economic activities on digital infrastructure, emerging economies are struggling in their efforts to build a robust digital infrastructure due to weak affordability index and lack of coordination between various stakeholders. The current chapter discusses India's digital transformation, highlighting the various programs and initiatives taken by the Indian government to foster the goal of Digital India. The authors also shed light on recent technological trends influencing the development of digital infrastructure and suggest measures to encourage the adoption of latest technology and promote investments in digital infrastructure projects.KeywordsDigital infrastructureDigital IndiaIndia StackNew educational policy

Digitalization processes are an important aspect in the development of economies of countries around the world. The Seventeen UN Sustainable Development Goals (UN, 2015) announced in 2015 presented a challenge to the global economy. Solving the problem strengthening digitalization processes will achieve the following goals: Decent work and economic growth (goal 8), build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (goal 9) and, make cities and human settlements inclusive, safe, resilient and sustainable (goal 11). Digital transformation is crucial for enhancing societal and economic progress in Sri Lanka. This study aims to investigate the evolution of digital technology use in Sri Lanka, focusing on internet access, mobile phone usage, and digital literacy. The process includes looking at government efforts, telecom statistics, and case studies that are industry-specific. The statistics show that there has been a significant increase in internet penetration to 50% and mobile phone subscriptions to 28.4 million due to competitive market conditions and regulatory activities. The paper highlights how crucial it is to address digital literacy and infrastructure concerns in order to leverage digital revolution for fair growth. Interestingly, metropolitan regions have greater rates of digital adoption than rural ones, indicating a need to address the digital divide. Achieving nationwide digital inclusion depends in large part on the government's role in promoting digital education and enhancing internet accessible. The report also highlights the necessity of ongoing investments in digital infrastructure and the development of programs for developing digital skills. The practical implications of these findings point to the possibility of greatly boosting the population's digital capacities by focused policies and well-timed investments, which will promote social inclusion and economic growth. Sri Lanka can enhance its residents' quality of life, draw in foreign investment, and more fully integrate into the global digital economy by concentrating on sustainable digital growth. Policymakers, business stakeholders, and academic scholars interested in the digital transformation of developing economies will find great value in this thorough analysis.

Digital infrastructure and cross-regional collaborative innovation in enterprises