Titelaufnahme

Titel
Nonlinearity between the shadow economy and level of development / Dong Frank Wu (IMF), Friedrich Schneider (University of Linz and IZA) ; IZA Institute of Labor Economics
VerfasserWu, Dong ; Schneider, Friedrich
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, May 2019
Ausgabe
Elektronische Ressource
Umfang1 Online-Ressource (28 Seiten) : Diagramme
SerieDiscussion paper ; no. 12385
URNurn:nbn:de:hbz:5:2-192404 
Zugriffsbeschränkung
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Volltexte
Nonlinearity between the shadow economy and level of development [1.13 mb]
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Zusammenfassung (Englisch)

This paper is the first attempt to directly explore the long-run nonlinearity of the shadow economy. Using a dataset of 158 countries over the period from 1996 to 2015, our results reveal a robust U-shaped relationship between the shadow economy size and GDP per capita. Our results imply that the shadow economy tends to increase when economic development surpasses a given threshold or at least does not disappear with economic growth. Our findings suggest that special attention should be given to the country's level of development when designing policies to tackle issues related to the shadow economy.