Property rights and shadow economies: A global perspective

Hoyong Jung () and Youngjae Hwang ()
Additional contact information
Hoyong Jung: Graduate School of Public Administration, Seoul National University
Youngjae Hwang: Real Estate Department, Sogang University

Economics Bulletin, 2024, vol. 44, issue 4, 1481 - 1491

Abstract: Many countries aim to reduce shadow economies due to the negative externalities they impose on society. This study examines the role of the property rights system and investigates how well-functioning property rights influence the underground economy from a multinational and multiperiod perspective. Employing two-way fixed effects and instrumental variable estimation, our findings confirm the prediction that the size of the shadow economy diminishes with the effectiveness of the property rights system. These results highlight the importance of establishing incentives for economic agents through the implementation of a robust private property system, which is essential for fostering both economic and social development.

Keywords: shadow economy; property rights; individualism (search for similar items in EconPapers)
JEL-codes: H2 O1 (search for similar items in EconPapers)
Date: 2024-12-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2024/Volume44/EB-24-V44-I4-P118.pdf (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:ebl:ecbull:eb-24-00448

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().