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 cross-section 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
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Englisch
- Erschienen in
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Series: IZA Discussion Papers ; No. 1936
Bureaucracy; Administrative Processes in Public Organizations; Corruption
Tax Evasion and Avoidance
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
shadow economy
regulation
tax burden
Korruption
Schattenwirtschaft
Regulierung
Steuerbelastung
Schätzung
Welt
Schneider, Friedrich G.
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:24 MESZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Dreher, Axel
- Schneider, Friedrich G.
- Institute for the Study of Labor (IZA)
Entstanden
- 2006