Economics at your fingertips  

The Shadow Economy in Colombia: Size and Effects on Economic Growth

Friedrich Schneider () and Hametner Bettina
Additional contact information
Hametner Bettina: Economist, Austria

Peace Economics, Peace Science, and Public Policy, 2014, vol. 20, issue 2, 33

Abstract: Using the currency demand approach, size and development of Colombia’s shadow economy are estimated over the period from 1980 to 2012. The results show a great extent of shadow economic activity varying over time between 27 and 56% of GDP. The most important factors driving the shadow economy are indirect taxation and unemployment. Analyzing the interaction between shadow and official economy, the shadow economy has a negative effect on the official one. Average growth of real per capita GDP is 1.86% between 1980 and 2012, without shadow economy it would have been higher around 0.12 percentage points on average.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link) ... -0059.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: The Shadow Economy in Colombia: Size and Effect on Economic Growth (2013) Downloads
Working Paper: The shadow economy in Colombia: size and effects on economic growth (2007) Downloads
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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Peace Economics, Peace Science, and Public Policy is currently edited by Raul Caruso

More articles in Peace Economics, Peace Science, and Public Policy from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

Page updated 2019-08-20
Handle: RePEc:bpj:pepspp:v:20:y:2014:i:2:p:33:n:3