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Title:Shadow economies and corruption all over the world: what do we really know? PDF Logo
Authors:Schneider, Friedrich G.
Issue Date:2006
Series/Report no.:CESifo working paper 1806
Abstract:Estimations of the size and development of the shadow economy for 145 countries, including developing, transition and highly developed OECD economies over the period 1999 to 2003 are presented. The average size of the shadow economy (as a percent of “official” GDP) in 2002/03 in 96 developing countries is 38.7%, in 25 transition countries 40.1%, in 21 OECD countries 16.3% and in 3 Communist countries 22.3%. An increased burden of taxation and social security contributions, combined with labor market regulation, are the driving forces of the shadow economy. Furthermore, the results show that the shadow economy reduces corruption in high-income countries, but increases corruption in low income countries. Finally, the various estimation methods are discussed and critically evaluated.
JEL:O17
O5
D78
H2
H11
H26
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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