The Impact of Digital Technology on Tax Intake in Algeria : An Econometric Analysis (2014–2024)

Abstract

This study investigates the impact of Digital Technology on tax intake in Algeria during the period 2014–2024. The theoretical framework reviews the key concepts related to the study variables, namely digitization and tax intake. An empirical econometric analysis was conducted using the Autoregressive Distributed Lag (ARDL) model, which allows the examination of both short- and long-run dynamic relationships among variables.
Tax intake was used as the dependent variable, while Digital Technology was measured through several indicators, including the number of automated machines, the Information and Communication Technology (ICT) usage index, and the number of hours required to pay taxes. Economic growth, total tax intake, and petroleum tax intake were also included as control variables.
The findings reveal a positive and statistically significant relationship between Digital Technology and tax intake in both the short and long run, except for the tax payment hours indicator in the long run. Moreover, the Error Correction Model (ECM) coefficient is negative and significant (–0.42), indicating that about 42% of short-run disequilibria adjust annually toward the long-run equilibrium. These results highlight the crucial role of Digital Technology in strengthening tax intake and supporting fiscal sustainability in Algeria.