The shadow economy in Colombia: size and effects on economic growth
Friedrich Schneider () and
Bettina Hametner ()
No 2007-03, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria
Using the currency demand approach size and development of the Colombian shadow economy are estimated over the period from 1976 to 2002. In the 70s the size fluctuated around 20% of official GDP and rose to 50% in the 90s. The most important factors driving the shadow economy are unemployment and taxation. Analyzing the interaction between shadow and official economy, the shadow economy has a positive effect on the official one. Average growth rate of real per capita GDP is 1.11% between 1976 and 2002 and the shadow economy "explains" on average between 0.09 and 0.27 of this growth.
Keywords: Colombian shadow economy; currency demand method; taxation; unemployment; interaction between the shadow and official economy (search for similar items in EconPapers)
JEL-codes: O17 O5 D78 H2 H11 H26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-pbe
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Journal Article: The Shadow Economy in Colombia: Size and Effects on Economic Growth (2014)
Working Paper: The Shadow Economy in Colombia: Size and Effect on Economic Growth (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:jku:econwp:2007_03
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