Arbeitspapier

Nonlinearity between the Shadow Economy and Level of Development

This paper is the first attempt to directly explore the long-run nonlinearity of the shadow economy. Using a dataset of 158 countries over the period from 1996 to 2015, our results reveal a robust U-shaped relationship between the shadow economy size and GDP per capita. Our results imply that the shadow economy tends to increase when economic development surpasses a given threshold or at least does not disappear with economic growth. Our findings suggest that special attention should be given to the country's level of development when designing policies to tackle issues related to the shadow economy.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 12385

Klassifikation
Wirtschaft
Informal Economy; Underground Economy
Tax Evasion and Avoidance
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Institutions and Growth
Education and Economic Development
Thema
shadow economy
level of development
nonlinearity
GDP per capita

Ereignis
Geistige Schöpfung
(wer)
Wu, Dong Frank
Schneider, Friedrich
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2019

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Wu, Dong Frank
  • Schneider, Friedrich
  • Institute of Labor Economics (IZA)

Entstanden

  • 2019

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