Corruption, Shadow Economy and Deforestation: Friends or Strangers?

Adeline-Cristina Cozma, Corina-Narcisa (Bodescu) Cotoc, Viorela Ligia Vaidean and Monica Violeta Achim
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Adeline-Cristina Cozma: Faculty of Economics and Business Administration, Babes-Bolyai University, 400591 Cluj-Napoca, Romania
Corina-Narcisa (Bodescu) Cotoc: Faculty of Economics and Business Administration, Babes-Bolyai University, 400591 Cluj-Napoca, Romania
Viorela Ligia Vaidean: Faculty of Economics and Business Administration, Babes-Bolyai University, 400591 Cluj-Napoca, Romania
Monica Violeta Achim: Faculty of Economics and Business Administration, Babes-Bolyai University, 400591 Cluj-Napoca, Romania

Risks, 2021, vol. 9, issue 9, 1-21

Abstract: This study aims to reveal the connection between corruption and shadow economy, on one hand, and deforestation, on the other. The research considers 131 countries from all over the world, in the timeframe between the years 2012 and 2020, and it reveals that corruption and shadow economy positively influence deforestation. Determinants like democratic governance quality, press freedom, wood export share, and culture are also key factors in implementing the right, efficient countermeasures aimed at reducing the levels of illegal deforestation and sustainably managing the forestland. The importance of this study is to provide a solid quantitative basis to decision-makers that come across this problem of illegal logging through a better, fact-based understanding of the phenomenon.

Keywords: corruption; shadow economy; deforestation; illegal logging; timber mafia; wooden mafia; sustainability (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2021
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