The Impact of Economic Globalization on the Shadow Economy in Egypt

Mohammad Reza Farzanegan () and Mai Hassan

No 6424, CESifo Working Paper Series from CESifo

Abstract: This study examines the economic globalization and the shadow economy nexus in Egypt. Using time series data from 1976 to 2013, the impulse response analysis shows that the response of the shadow economy in Egypt to positive shocks in economic globalization is negative and statistically significant for the first three years following the shock. This finding is obtained by controlling for several intermediary channels in globalization-shadow economy nexus such as education, government spending, industrial production, and labor force participation. Our results show the importance of promoting economic globalization by reducing the costs of doing business and trade in dealing with sizable shadow economy in Egypt.

Keywords: shadow economy; globalization; VAR model; impulse responses; Egypt (search for similar items in EconPapers)
JEL-codes: C53 F15 F40 O53 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-ara, nep-int and nep-iue
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: The impact of economic globalization on the shadow economy in Egypt (2017)
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