Shadow economies and corruption all over the world: what do we really know?

Friedrich Schneider ()

No 2007-9, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Estimations of the shadow economies for 145 countries, including developing, transition and highly developed OECD economies over 1999 to 2003 are presented. The average size of the shadow economy (as a percent of "official" GDP) in 2002/03 in 96 developing countries is 38.7%, in 28 transition countries 40.1% and in 21 OECD countries 16.3%. An increased burden of taxation and social security contributions, combined with a labour market regulation are the driving forces of the shadow economy. Furthermore, the results show that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. Finally, the various estimation methods are discussed and critically evaluated.

Keywords: shadow economy of 145 countries; tax burden; tax moral; quality of state institutions; regulation; DYMIMIC and other estimation methods (search for similar items in EconPapers)
JEL-codes: D78 H11 H2 H26 O17 O5 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-afr, nep-dev, nep-pbe and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (77)

Downloads: (external link)
http://www.economics-ejournal.org/economics/discussionpapers/2007-9
https://www.econstor.eu/bitstream/10419/17932/1/dp2007-9.pdf (application/pdf)

Related works:
Chapter: Shadow Economies and Corruption all over the World: What do we Really Know? (2008)
Working Paper: Shadow Economies and Corruption all over the World: What do we really Know? (2006)
Working Paper: Shadow Economies and Corruption All Over the World: What Do We Really Know? (2006)
Working Paper: Shadow Economies and Corruption all over the World: What do we really know? (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:5523

Access Statistics for this paper

More papers in Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().