Payame Noor University Economic Growth and Development Research 2228-5954 13 52 2023 09 23 Estimating Tax Evasion and its Effect on Iran's Economic Growth (Denton's Data Analysis Approach) Estimating Tax Evasion and its Effect on Iran's Economic Growth (Denton's Data Analysis Approach) 134 119 9171 10.30473/egdr.2022.65090.6566 FA Hasti Bagheri PhD Student Department of Economics, Payame Noor University, Tehran, Iran Asghar Abolhassani Hastiani Professor of Department of Economics, Payame Noor University, Tehran, Iran Yeganeh Mousavi Jahromi Professor of Department of Economics, Payame Noor University, Tehran, Iran 0000-0001-9281-6119 Kamran Mani Assistant Professor of Department of Economics, Payame Noor University, Tehran, Iran Journal Article 2022 08 14 Today, taxes play an important role in the economic growth and development of countries by maintaining the existence of the government and financing social programs and infrastructure investment. Also, taxation helps to alloca<br />te resources, redistribute income and correct negative externalities as well as support domestic industries. Therefore, tax evasion reduces the role of tax effectiveness in the mentioned cases. The relevance of the subject of the study is evident from the fact that every year an important part of financial income is lost through the activities of financial planning, financial evasion and tax evasion carried out by the private sector. The purpose of this article is to investigate the relationship between tax evasion and economic growth during the period of 2011-2020 Iran. For this purpose, seasonal data from Denton's method and estimated tax evasion data have been used. In this study, in the form of a three-part model, the effect of extra-fiscal on economic growth has been investigated using vector autoregression model with distributional lag (ARDL). The results show that in the short term, in the economic growth model, the coefficient of tax evasion, employment rate, foreign investment and oil income variables are negative. However, in the long run, the impact of tax evasion, employment rate, oil revenue and average tax burden on economic growth are positive. Despite the fact that the coefficient of foreign investment in the long run is not significant. Today, taxes play an important role in the economic growth and development of countries by maintaining the existence of the government and financing social programs and infrastructure investment. Also, taxation helps to alloca<br />te resources, redistribute income and correct negative externalities as well as support domestic industries. Therefore, tax evasion reduces the role of tax effectiveness in the mentioned cases. The relevance of the subject of the study is evident from the fact that every year an important part of financial income is lost through the activities of financial planning, financial evasion and tax evasion carried out by the private sector. The purpose of this article is to investigate the relationship between tax evasion and economic growth during the period of 2011-2020 Iran. For this purpose, seasonal data from Denton's method and estimated tax evasion data have been used. In this study, in the form of a three-part model, the effect of extra-fiscal on economic growth has been investigated using vector autoregression model with distributional lag (ARDL). The results show that in the short term, in the economic growth model, the coefficient of tax evasion, employment rate, foreign investment and oil income variables are negative. However, in the long run, the impact of tax evasion, employment rate, oil revenue and average tax burden on economic growth are positive. Despite the fact that the coefficient of foreign investment in the long run is not significant. https://egdr.journals.pnu.ac.ir/article_9171_11af13f3a4ff97554025d47dada945a7.pdf