Shadow Economies around the World: What do we really know?

Friedrich Schneider ()

No 16, IAW Discussion Papers from Institut für Angewandte Wirtschaftsforschung (IAW)

Abstract: Using the DYMIMIC approach, estimates of the shadow economy in 110 developing, transition and developed OECD countries are presented. The average size of the shadow economy (in percent of official GDP) over 1999-2000 in developing countries is 41%, in transition countries 38% and in OECD countries 17%. An increasing burden of taxation and social security contributions are the driving forces of the shadow economy. If the shadow economy increases by one percent the growth rate of the “official” GDP of a developing (of a developed and/or transition) country decreases by 0.6% (increases by 0.8 and 1.0% respectively).

Keywords: shadow economy; interaction of the shadow economy with the official one; tax burden; government regulation; DYMIMIC method (search for similar items in EconPapers)
JEL-codes: D78 H11 H2 H26 O17 O5 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2004-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (127)

Downloads: (external link)
http://www.iaw.edu/RePEc/iaw/pdf/iaw_dp_16.pdf (application/pdf)

Related works:
Journal Article: Shadow economies around the world: what do we really know? (2005)
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:iaw:iawdip:16

Access Statistics for this paper

More papers in IAW Discussion Papers from Institut für Angewandte Wirtschaftsforschung (IAW) Contact information at EDIRC.
Bibliographic data for series maintained by Rolf Kleimann ().