FROM TAX DIGITALIZATION TO SUSTAINABLE FINANCE: AN EMPIRICAL ASSESSMENT OF EFFICIENCY IN EMERGING ECONOMIES

Abstract

This article discusses the link between the digitalization of tax administration (e-invoicing, e-filing, electronic payments, and risk analytics) and the development of sustainable finance in emerging economies. Based on recent evidence (2020–2025), (1) a quantitative review of the impacts of tax technologies on compliance and collection and (2) a synthesis of the evolution of the green, social, sustainable and VMS (GSSS) bond markets are combined. The results show that mandatory digitalization supported by audits and analytical capabilities increases collection efficiency; in turn, a more effective and transparent administration helps to deepen the GSSS markets, by reducing perceived risks and improving the traceability of the use of resources. Implications for reform sequencing and market integrity are discussed. (OECD, 2025; Nose & Mengistu, 2023; Okunogbe & Santoro, 2022; UNCTAD, 2024; IFC & Amundi, 2025).