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Shadow Economies Around the World Size, Causes, and ConsequencesFriedrich SchneiderJohannes Kepler University Linz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA) Dominik EnsteUniversity of Cologne - Department of Economics February 2000 IMF Working Paper No. 00/26 Abstract: This paper presents estimates of the size of the shadow economy in 76 developing, transition, and OECD countries, which are derived by combining figures from different estimation methods. We describe and discuss the strengths and weaknesses of the different estimation methods. We find that the growth of the shadow economy which is now remarkably large in the 76 countries is strongly related to increasing burdens of taxation and social security contributions, as well as to the extent of state regulatory activities. Rising corruption also has a clearly positive impact on the growth of the shadow economy.
Number of Pages in PDF File: 57 JEL Classification: 017, 05, D78, H2, H26 working papers seriesDate posted: January 30, 2006Suggested CitationContact Information
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