Arbeitspapier

Corruption and the shadow economy: An empirical analysis

This paper analyzes the influence of the shadow economy on corruption and vice versa. We hypothesize that corruption and shadow economy are substitutes in high income countries while they are complements in low income countries. The hypotheses are tested for a crosssection of 120 countries and a panel of 70 countries for the period 1994-2002. Our results show that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. We also find that stricter regulations increase both corruption and the shadow economy.

Sprache
Englisch

Erschienen in
Series: KOF Working Papers ; No. 123

Klassifikation
Wirtschaft
Bureaucracy; Administrative Processes in Public Organizations; Corruption
Tax Evasion and Avoidance
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Thema
Corruption
Shadow Economy
Regulation
Tax Burden
Korruption
Schattenwirtschaft
Regulierung
Steuerbelastung
Schätzung
Welt

Ereignis
Geistige Schöpfung
(wer)
Dreher, Axel
Schneider, Friedrich
Ereignis
Veröffentlichung
(wer)
ETH Zurich, KOF Swiss Economic Institute
(wo)
Zurich
(wann)
2006

DOI
doi:10.3929/ethz-a-005118325
Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Objekttyp

  • Arbeitspapier

Beteiligte

  • Dreher, Axel
  • Schneider, Friedrich
  • ETH Zurich, KOF Swiss Economic Institute

Entstanden

  • 2006

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