Corruption, Shadow Economy and Income Inequality: Evidence from Asia A number of recent studies for Latin America show that as the size of the informal economy grows, corruption is less harmful to inequality. We investigate if this relationship is equally compelling for developing countries in Asia where corruption, inequality and shadow economies are considerably large. We use Panel Least Squa...

Religion is increasingly acknowledged to be a cultural dimension which affects economic outcomes in different regards. This contribution focuses on religion’s possible impact on the shadow economy. Different dimensions of the religious markets are taken into account. These dimensions refer to the overall degree of religiosity, the specific impact of different religions, religious competition or...

This paper develops a simple framework to analyze the links between corruption and the unofficial economy and their implications for the official economy. In a model of self-selection with heterogeneous entrepreneurs, we show that the entrepreneurs’ option to flee to the underground economy constrains a corrupt official’s ability to introduce distortions to the economy for private gains. The un...

The main purpose of the literature review is an analysis of the impact of shadow activity on social and economic relations and the welfare of the population. The scientific novelty of the research is in the development and realization of the model of interaction of the state and population as a factor contributing to the shadow economic activity. It was shown that shadow economy promotes an inc...

Accurate economic intelligence is critical in designing policies, strategies and investments for Iraq ’s economic recovery. Unfortunately, very little is known about the country’s economic progress over the last several decades,[2] let alone the current situation. There are huge gaps in even the most routine data compiled by nearly every country. The International Monetary Fund, for instance, d...

In the last decade, there are strong indications of an expansion in shadow economic activities in the Netherlands Antilles, which is caused by the high tax burden and high unemployment. This paper attempts to measure the size of the shadow economy of the Netherlands Antilles using two distinct estimation methods: the direct and indirect approach. Both methods produced similar results, showing t...

The aim of this paper is to study the relationship between the shadow economy and corruption as determinants of public debt in the Spanish Autonomous Communities. In addition, we construct a Corruption Perception Index for those regions. Our data constitute panel data for the period 2000–2012. The results show that the volume of the shadow economy has a significant and positive impact on region...