Does the Shadow Economy Kuznets Curve Exist for Russian Regions?

Anna Kireenko (), Ekaterina Nevzorova and Denis Alekseev ()
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Anna Kireenko: Ural Federal University
Denis Alekseev: Charles University, CERGE-EI

A chapter in Global Versus Local Perspectives on Finance and Accounting, 2019, pp 153-166 from Springer

Abstract: Abstract The authors present the results of testing the hypothesis on the existence of the inverted U-shaped interrelation between the scale of the shadow economy in Russian regions and the share of urban population in the total population. The research method aims to analyze the approximating curves built with the scatter plot. The research uses the data of Rosstat and our original calculations of shadow economy scales in Russian regions in 2002–2013. The hypothesis on the existence of the inverted U-shaped interrelation is generally confirmed for the shadow economy scale calculated by the tax-method. This interrelation does not have a clear U-shape, but it is expressed as inverted for the shadow economy scale calculated by the MIMIC-method. The authors make a conclusion that the migration of population from countryside to cities and the increase of urban population will further contribute to the growth of shadow economy scale in the less urbanized regions and to the decrease of its scale for the regions with middle (at present) level of urbanization.

Keywords: Shadow economy; Scale of shadow economy; Determinants of the shadow economy; Russian regions; Urbanization (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-030-11851-8_15

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DOI: 10.1007/978-3-030-11851-8_15

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