The digital institutional gap in emerging economies: An analysis of the trust gap paradox and informal sector evasion in Morocco

Nada ELmagui, Khadija BENAZZI, El houssain ATTAK

Abstract


Morocco's tax administration has undergone rapid digital transformation, heavily increasing automated audits. However, this technological expansion has outpaced institutional trust, creating a "digital institutional gap". Utilizing a mixed-methods approach with data from the General Directorate of Taxes (2017–2024) and behavioral frameworks like the Slippery Slope model, this paper investigates the "trust gap paradox". We find that while digitalization increases the "visibility asymmetry" of formal businesses, the informal sector (10.9% of national wealth) reacts with "digital immunity," deliberately avoiding digital footprints to evade algorithmic surveillance. Evidence from a 2024 voluntary regularization operation proves that fostering trust is more effective than coercive monitoring. The study concludes that transitioning to a synergistic tax partnership requires prioritizing soft resources, algorithmic transparency, and linking digital participation to tangible social benefits.

Keywords


Digital Institutional Gap , Trust Gap Paradox , Informal Economy , Tax Compliance , Visibility Asymmetry.

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References


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DOI: http://dx.doi.org/10.52155/ijpsat.v56.1.7939

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