Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35501
Authors: 
Buehn, Andreas
Schneider, Friedrich G.
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4182
Abstract: 
The relationship between corruption and the shadow economy is not clear. Theoretically, they either substitute or complement each other -exhibiting either a negative or positive relationship. This paper -using a structural equation model with two latent variables - extracts information on various dimensions of corruption and the shadow economy to contribute to the debate on their relationship. It presents empirical evidence of a positive relationship between the shadow economy and corruption. The results show that the shadow economy influences corruption more than corruption influences the shadow economy.
Subjects: 
Shadow economy
corruption
SEM models
JEL: 
O17
O5
D78
H11
H26
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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