Factors of the Shadow Economy in the Republic of Albania

Alban Hetemi (), Drita Konxheli (), Ozan Gulhan () and Driton Balaj ()
Additional contact information
Alban Hetemi: University of Prishtina
Drita Konxheli: University of Prishtina
Ozan Gulhan: University of Prishtina
Driton Balaj: University of Prishtina

EuroEconomica, 2018, issue 3(37), 213-219

Abstract: The shadow economy has been of interest to macro policy makers in today’s world. The shadow economy may erode significantly a country’s tax and social security base by effecting negatively the provision of public services. The objective of this study is to contribute to the current literature on the factors of the shadow economy, respectively by focusing in the Republic of Albania. In order to achieve this objective, the authors used multiple variable linear regression. The study provides results and tests hypotheses about effect of tax burden, government effectiveness and rule of law on the shadow economy. Comparing with other studies, our study found out that not adequate of legal environment has positive impact on shadow economy. Same with other studies, this study found out that tax burden and government effectiveness have negative impact in shadow economy. The key contribution of the study is that it provides results about the factors of shadow economy which is important for policy makers, strategists and academics.

Keywords: Shadow economy; GDP; tax burden; government effectiveness; rule of law (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/5213/4737 (application/pdf)

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:dug:journl:y:2018:i:3:p:213-219

Access Statistics for this article

More articles in EuroEconomica from Danubius University of Galati Contact information at EDIRC.
Bibliographic data for series maintained by Florian Nuta ().