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
Englisch

Erschienen in
Series: CREMA Working Paper ; No. 2006-01

Klassifikation
Wirtschaft
Bureaucracy; Administrative Processes in Public Organizations; Corruption
Tax Evasion and Avoidance
Thema
Corruption
Shadow Economy
Regulation
Tax Burden

Ereignis
Geistige Schöpfung
(wer)
Dreher, Axel
Schneider, Friedrich
Ereignis
Veröffentlichung
(wer)
Center for Research in Economics, Management and the Arts (CREMA)
(wo)
Basel
(wann)
2006

Handle
Letzte Aktualisierung
20.09.2024, 08:22 MESZ

Objekttyp

  • Arbeitspapier

Beteiligte

  • Dreher, Axel
  • Schneider, Friedrich
  • Center for Research in Economics, Management and the Arts (CREMA)

Entstanden

  • 2006

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