The Size and Development of the Shadow Economies of 22 Transition and 21 OECD Countries
51 Pages Posted: 29 Jul 2002
Date Written: June 2002
Using the currency demand and DYMIMIC approaches estimates are presented about the size of the shadow economy in 22 Transition and 21 OECD countries. Over 2001/2002 in 21 OECD countries is the average size of the shadow economy (in percent of official GDP) 16.7% of "official" GDP and of 22 Transition countries 38.0%. The average size of the shadow economy labor force (in percent of the population of working age) of the year 1998/99 in 7 OECD-countries is 15.3% and in 22 Transition countries is 30.2%. An increasing burden of taxation and social security contributions combined with rising state regulatory activities are the driving forces for the growth and size of the shadow economy (labor force).
Keywords: Shadow Economy, Transition Economies, Tax and Social Security Burden, Government Regulation
JEL Classification: O17, O5, D78, H2, H26
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