The Size of the Shadow Economies of 145 Countries all over the World: First Results over the Period 1999 to 2003

64 Pages Posted: 16 Dec 2004  

Friedrich Schneider

Johannes Kepler University Linz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)

Date Written: December 2004

Abstract

Using the DYMIMIC approach, estimates of the shadow economy in 145 developing, transition, developed OECD countries, South Pacific islands and still communist countries are presented. The average size of the shadow economy (in percent of official GDP) over 2002/2003 in developing countries is 39.1%, in transition countries 40.1%, in OECD countries 16.3%, South Pacific islands 33.4% and 4 remaining Communist countries 21.8%. An increasing burden of taxation, high unemployment and low official GDP growth are the driving forces of the shadow economy.

Keywords: shadow economy, tax burden, government regulation, DYMIMIC method

JEL Classification: O17, O5, D78, H2, H11, H26

Suggested Citation

Schneider, Friedrich, The Size of the Shadow Economies of 145 Countries all over the World: First Results over the Period 1999 to 2003 (December 2004). IZA Discussion Paper No. 1431. Available at SSRN: https://ssrn.com/abstract=636661

Friedrich G. Schneider (Contact Author)

Johannes Kepler University Linz - Department of Economics ( email )

Altenbergerstrasse 69
A-4040 Linz, 4040
Austria
+43 732 2468 8210 (Phone)
+43 732 2468 8208 (Fax)

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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