On the Human Capital Factors to Evaluate the Efficiency of Tax Collection Using Data Envelopment Analysis Method

Abstract

This study focuses on the investigation of the influence of human capital factors on the tax collection efficiency. Literature review indicated that although the efficiency evaluation of tax collection has been discussed in previous study, the influence of human capital factors on the tax collection efficiency has seldom been addressed. Hence, the Data Envelopment Analysis (DEA) method has been employed to address this issue in this study. The innovation of this study lays on that the human capital factors have been taken into account in the efficiency evaluation of tax collection. To measure performance of the human capital factors in the tax collection, a case study in Wuhan city, China has been carried out. The DEA analysis results demonstrate that the tax collection efficiency increases with the increase of the number and higher education level of the tax officers and the higher education level of the tax officers still has a large room to improve. Then, relative improvement strategies have been proposed to strengthen tax collection efficiency. Hence, the findings of this study contribute to the body of knowledge in the efficiency evaluation of tax collection and its improvement measurement, which can be referred by other cities over the world.