Shadow Economies around the World : What Do We Know?

Arbeitspapier

Using various statistical procedures, estimates about the size of the shadow economy in 110 developing, transition and OECD countries are presented. The average size of the shadow economy (in percent of official GDP) over 1999-2000 in developing countries is 41%, in transition countries 38% and in OECD countries 18.0%. An increasing burden of taxation and social security contributions combined with rising state regulatory activities are the driving forces for the growth and size of the shadow economy. If the shadow economy increases by one percent the annual growth rate of the ?official? GDP of a developing country (of a industrialized and/or transition country) decreases by 0.6% (increases by 0.8 and 1.0 respectively).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1043

Classification and Topics

• Classification: Wirtschaft ; Tax Evasion and Avoidance ; Structure, Scope, and Performance of Government ; Formal and Informal Sectors; Shadow Economy; Institutional Arrangements ; Positive Analysis of Policy Formulation and Implementation
• Subject: shadow economy ; interaction of the shadow economy with the official one ; tax burden ; Schattenwirtschaft ; Steuerbelastung ; Wirtschaftswachstum ; Schätzung ; Welt ; Entwicklungsländer ; Osteuropa ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schneider, Friedrich G. ; Klinglmair, Robert
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/20278
• Last update: 10.03.2025, 11:44 AM CET