EconPapers    
Economics at your fingertips  
 

Mitigating Shadow Economy Through Dual Banking Sector Development in Malaysia

Muzafar Shah Habibullah, Baharom Abdul Hamid, Badariah Haji Din () and Fumitaka Furuoka
Additional contact information
Badariah Haji Din: Universiti Utara Malaysia

Chapter 4 in Islamic Economies, 2017, pp 41-62 from Palgrave Macmillan

Abstract: Abstract Theory argues that as long as the shadow economy is of sufficient size, the leakage or loss of tax revenue through tax evasion will also be substantial. In this chapter, we provide new estimates of the size of the shadow economy in Malaysia for the period 1971–2013. Further, we relate the shadow economy to its determinants as measured by the misery index. This chapter reveals that the relationship between the shadow economy and financial development in Malaysia exhibits an inverted U-shaped curve. The chapter concludes that the Malaysian government should embark on programs that can reduce the size of the shadow economy, relying on its dual banking system of Islamic and conventional banks.

Keywords: Shadow economy; Islamic banking; Malaysia (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:pal:pcichp:978-3-319-47937-8_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9783319479378

DOI: 10.1007/978-3-319-47937-8_4

Access Statistics for this chapter

More chapters in Palgrave CIBFR Studies in Islamic Finance from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-31
Handle: RePEc:pal:pcichp:978-3-319-47937-8_4