EconPapers    
Economics at your fingertips  
 

Has Black Income as a Proportion of GDP in India Declined in the Post-Reform Period?

T.P. Sinha ()
Additional contact information
T.P. Sinha: Swami Shraddhanand College

Indian Economic Review, 2015, vol. 50, issue 2, 273-316

Abstract: Though the rapid growth of black income in India in recent years poses to be a serious economic threat, some recent studies report that it has been declining in the post-reform period. This decline in black income - as these studies claim - has been attributed to the ameliorative effects of economic reforms and liberalization ushered in India in the early nineties. Studies such as Schneider et al. (2003), and Schneider et al. (2010) estimating black income in India from 1960 to 1997 and from 1999 to 2007 respectively conclude that black income in India has declined since 1992-93. Likewise, a recent draft report of the National Institute of Financial Management (NIFM) also notes that the share of black income in the GDP has declined during the 1990's. Apparently this decline in the share of black income in GDP post-reform could be a sign of great relief to the policy makers as well as to the Indian government, reinforcing their belief on the benign effects of structural reforms and liberalization. But such inferences could be highly misleading. The present study contradicting the findings of Schneider et al. (2003), Schneider et al.(2010), and the draft NIFM Report observes that from 1951 to 2011 black income in India has increased at an increasing rate with no sign of abatement even after 1992-93 in the post-reform liberalization period. This contradictory finding of the present study vis-a-vis the earlier studies should be a clarion call to the government and the policy makers to take a serious note of the problem.

Keywords: Shadow Economy; Black Economy; Black Income; MIMIC; SEM; MLE (search for similar items in EconPapers)
JEL-codes: C39 C52 E26 H26 O17 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: Track citations by RSS feed

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:dse:indecr:0103

Ordering information: This journal article can be ordered from
http://www.ierdse.org/

Access Statistics for this article

Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar

More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().

 
Page updated 2020-06-25
Handle: RePEc:dse:indecr:0103