IDEAS home Printed from https://ideas.repec.org/a/eme/jespps/jes-04-2021-0203.html
   My bibliography  Save this article

Macroeconomic fundamentals, institutional quality and shadow economy in OIC and non-OIC countries

Author

Listed:
  • Shabeer Khan
  • Mohd Ziaur Rehman

Abstract

Purpose - The purpose of this paper is to analyze the relationship between macroeconomic fundamentals, intuitional quality and shadow economy. Design/methodology/approach - By utilizing data setspanning from 2004 to 2015 of 141 countries, the study has employed advanced panel technique, i.e. Generalized Method of Moments (GMM) method. In order to check consistency of the results, the study also used fixed effect and random effect for robustness. Findings - The study finds that for the full sample, institutional quality has negative effect on shadow economy while macroeconomic fundaments effect shadow economy differently. After splitting the sample into Organization of Islamic Cooperation (OIC) and non-OIC countries subsamples, it observes same influence of macroeconomic fundaments and institutional quality on shadow economy, but the effect of macroeconomic fundaments and institutional quality on shadow economy is less observed for OIC countries. The results are found consistence by using different estimation methods. Originality/value - The current literature has focused on estimating the size of shadow economy and literature linking the macroeconomic fundaments, institutional quality and shadow economy is scarce. Additionally, this study provides the evidence for cross comparison between OIC economies and non-OIC economies.

Suggested Citation

  • Shabeer Khan & Mohd Ziaur Rehman, 2022. "Macroeconomic fundamentals, institutional quality and shadow economy in OIC and non-OIC countries," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 49(8), pages 1566-1584, January.
    • Handle: RePEc:eme:jespps:jes-04-2021-0203
    DOI: 10.1108/JES-04-2021-0203
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JES-04-2021-0203/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JES-04-2021-0203/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JES-04-2021-0203?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rahman, Sami Ur & Faisal, Faisal & Ali, Adnan & Sulimany, Hamid Ghazi H & Bazhair, Ayman Hassan, 2023. "Do financial technology and financial development lessen shadow economy? Evidence from BRICST economies using heterogenous bootstrap panel causality," The Quarterly Review of Economics and Finance, Elsevier, vol. 90(C), pages 201-210.
    2. Abdullah Bin Zafar & Tanvir Ahmed Tuhin, 2024. "An Ordinary Least Squares Approach Measuring the Impact of Factors Affecting the Underground Economy of Bangladesh and Their Implications in the Context of the Country’s Supply Chain," International Journal of Science and Business, IJSAB International, vol. 34(1), pages 92-107.
    3. Wajahat Azmi & Zaheer Anwer & Mohsin Ali & Shamsher Mohamad, 2024. "Competition, stability, and institutional environment: The case of dual banking economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(1), pages 609-631, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jespps:jes-04-2021-0203. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.