Shadow Economy and International Software Piracy
Posted: 22 Mar 2016 Last revised: 19 Apr 2016
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: 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
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