Shadow Economy and International Software Piracy

Posted: 22 Mar 2016 Last revised: 19 Apr 2016

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

Michael A. Nelson

University of Akron - Department of Economics

Date Written: 2012

Abstract

This article uses pooled data over the period 2004--2007 on about 100 nations to examine the impact of the shadow economy on the piracy of computer software. Results support the main hypothesis that a larger shadow economy leads to higher rates of software piracy. This claim is supported by various robustness checks. A 10% increase in the shadow sector increases software piracy about 1.4%. In other findings, greater economic prosperity and greater internet diffusion check piracy, while some legal institutional measures have statistically insignificant effects. Policy implications are discussed.

Suggested Citation

Goel, Rajeev K. and Nelson, Michael A., Shadow Economy and International Software Piracy (2012). Applied Financial Economics, Vol. 22, No. 23, pp.1951-1959, 2012. Available at SSRN: https://ssrn.com/abstract=2752644

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Michael A. Nelson

University of Akron - Department of Economics ( email )

Akron, OH 44325
United States
330-972-7939 (Phone)
330-972-5356 (Fax)

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