IDEAS home Printed from https://ideas.repec.org/a/rjr/romjef/vy2010i2p46-56.html
   My bibliography  Save this article

Estimating Hidden Economy and Hidden Migration: The Case of Romania

Author

Listed:
  • Albu, Lucian Liviu

    (Institute for Economic Forecasting, Casa Academiei Romane, Calea 13 Septembrie, No. 13, Sector 5, Bucharest, Romania, Correspondig Member of the Romanian Academy)

  • Iorgulescu, Raluca

    (Institute for Economic Forecasting, Casa Academiei Romane, Calea 13 Septembrie, No. 13, Sector 5, Bucharest, Romania)

  • Stanica, Cristian

    (Institute for Economic Forecasting, Casa Academiei Romane, Calea 13 Septembrie, No. 13, Sector 5, Bucharest, Romania)

Abstract

Economists have already established a relationship between tax rates and size of the hidden economy. The higher the level of taxation is, the greater the incentive to participate in hidden activity and escape taxes is. On the one hand, coming from generally accepted findings of the theory, we concentrate on evaluating the reasons for agents’ involvement in hidden economy and estimating the size of this part of economy in the case of Romania. At the same time, there is evidence of an extended hidden migration together with an increase in the official migration data, usually from eastern EU members to western countries. In a sense, hidden migration could be in relation to proper hidden economy. On the other hand, using some indirect procedures, we try to estimate the size of hidden migration in Romania.

Suggested Citation

  • Albu, Lucian Liviu & Iorgulescu, Raluca & Stanica, Cristian, 2010. "Estimating Hidden Economy and Hidden Migration: The Case of Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 46-56, July.
    • Handle: RePEc:rjr:romjef:v::y:2010:i:2:p:46-56
    as

    Download full text from publisher

    File URL: http://www.ipe.ro/rjef/rjef2_10/rjef2_10_3.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Friedrich Schneider, 2003. "The Development of the Shadow Economies and Shadow Labour Force of 21 OECD and 22 Transition Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(01), pages 17-23, February.
    2. repec:ces:ifodic:v:1:y:2003:i:1:p:14567827 is not listed on IDEAS
    3. Albu, Lucian Liviu, 2007. "Estimating the Size of Underground Economy in Romania," Working Papers of Institute for Economic Forecasting 070601, Institute for Economic Forecasting.
    4. Friedrich Schneider, 2003. "The Development of the Shadow Economies and Shadow Labour Force of 21 OECD and 22 Transition Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(1), pages 17-23, 02.
    5. Albu, Lucian Liviu & Kim, Byung Yeon & Duchene, Gerard, 2002. "AN ATTEMPT TO ESTIMATE THE SIZE OF INFORMAL ECONOMY BASED ON HOUSEHOLD BEHAVIOUR MODELING (l)," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 17-24, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Dell’Anno, Roberto & Davidescu, Adriana AnaMaria, 2019. "Estimating shadow economy and tax evasion in Romania. A comparison by different estimation approaches," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 130-149.
    2. Nancy Arizpe & Jesus Ramos-Martin & Mario Giampietro, 2012. "An analysis of the metabolic patterns of two rural communities affected by soy expansion in the North of Argentina," UHE Working papers 2012_06, Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica.
    3. Adriana AnaMaria DAVIDESCU, 2014. "Evaluating The Relationship Between Official Economy And Shadow Economy In Romania. A Structural Vector Autoregressive Approach," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 3(2), pages 57-65, DECEMBER.
    4. Adriana Anamaria Davidescu (Alexandru), 2014. "Investigating the Impact of Unemployment Rate on the Romanian Shadow Economy. A Complex Approach Based on ARDL and SVAR Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 109-127, December.
    5. Adriana AnaMaria DAVIDESCU, 2015. "The Relationship between Shadow Economy and Unemployment Rate. A Ardl Causality Analysis for the Case Of Romania," Romanian Statistical Review, Romanian Statistical Review, vol. 63(4), pages 46-62, December.
    6. Adriana AnaMaria Davidescu (Alexandru) & Ion Dobre, 2013. "The Impact of Unemployment Rate on the Size of Romanian Shadow Economy," Public Finance Review, , vol. 41(5), pages 578-607, September.
    7. Gheorghe H. Popescu & Adriana Ana Maria Davidescu & Catalin Huidumac, 2018. "Researching the Main Causes of the Romanian Shadow Economy at the Micro and Macro Levels: Implications for Sustainable Development," Sustainability, MDPI, vol. 10(10), pages 1-37, September.
    8. Albu, Lucian-Liviu & Ghizdeanu, Ion & Iorgulescu, Raluca, 2011. "Analysing drivers of and barriers to the sustainable development: hidden economy and hidden migration," MPRA Paper 32810, University Library of Munich, Germany.
    9. Felicia C. Abada & Charles O. Manasseh & Ifeoma C. Nwakoby & Ngozi Franca Iroegbu & Johnson I. Okoh & Felix C. Alio & Adedoyin I. Lawal & Onyinye J. Asogwa, 2021. "Relationship Between Unemployment Rate and Shadow Economy in Nigeria: A Tado-Yamamoto Approach," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 271-283, May.
    10. Adriana AnaMaria DAVIDESCU(ALEXANDRU) & Vasile Alecsandru STRAT, 2015. "SHADOW ECONOMY AND FOREIGN DIRECT INVESTMENTS: AN EMPIRICAL ANALYSIS FOR THE CASE OF ROMANIA Abstract : Shadow economy (SE) represents a controversial phenomenon, present more or less in all economies," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(2), pages 1-24, july.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adriana AnaMaria Davidescu (Alexandru) & Ion Dobre, 2013. "The Impact of Unemployment Rate on the Size of Romanian Shadow Economy," Public Finance Review, , vol. 41(5), pages 578-607, September.
    2. Albu, Lucian-Liviu, 2007. "A model to estimate informal economy at regional level: Theoretical and empirical investigation," MPRA Paper 3760, University Library of Munich, Germany.
    3. Anna Kireenko & Yuriy Ivanov & Ekaterina Nevzorova & Olga Polyakova, 2017. "Shadow Economy in the Regions of the Russian Federation and the Ukraine," Springer Proceedings in Business and Economics, in: David Procházka (ed.), New Trends in Finance and Accounting, chapter 0, pages 301-312, Springer.
    4. Edward Christie & Uwe Dulleck & Neil Foster-McGregor & Mario Holzner & Pawel Kowalewski & Robert Stehrer & Julia Wörz, 2003. "Monthly Report 08-09/2003," wiiw Monthly Reports 2003-08-09, The Vienna Institute for International Economic Studies, wiiw.
    5. Dario Cziraky & Max Gillman, 2004. "Inflation and Endogenous Growth in Underground Economies," wiiw Balkan Observatory Working Papers 50, The Vienna Institute for International Economic Studies, wiiw.
    6. Petrik Runst, 2011. "Post-Socialist Culture and Entrepreneurship," SOEPpapers on Multidisciplinary Panel Data Research 373, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Kamila Fialová & Ondrej Schneider, 2014. "Labor Market Institutions and Their Impact on Shadow Economies in Europe," Review of Economics and Institutions, Università di Perugia, vol. 5(1).
    8. Grzegorz Gołębiowski, 2007. "The Shadow Economy – the Polish Perspective," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 1(1), March.
    9. Roberto Dell'Anno & Ferda Halicioglu, 2010. "An ARDL model of unrecorded and recorded economies in Turkey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 37(6), pages 627-646, November.
    10. Bojan Nastav & Stefan Bojnec, 2007. "Shadow Economy in Slovenia: The Labour Approach," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 5(2), pages 193-208.
    11. Jarko Fidrmuc & Svatopluk Kapounek & Martin Siddiqui, 2017. "Which Institutions Are Important for Firms Performance? Evidence from Bayesian Model Averaging Analysis," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 64(4), pages 383-400, September.
    12. Nedra Baklouti & Younes Boujelbene, 2020. "A simultaneous equation model of economic growth and shadow economy: Is there a difference between the developed and developing countries?," Economic Change and Restructuring, Springer, vol. 53(1), pages 151-170, February.
    13. Van Poeck Andrè & Veiner Maret & Plasmans Joseph, 2007. "Wage flexibility in the new European Union members: How different form the “old” members?," wp.comunite 0006, Department of Communication, University of Teramo.
    14. Kamila Fialová, 2010. "Labor Institutions and their Impact on Shadow Economies in Europe," Working Papers IES 2010/29, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Dec 2010.
    15. Maurizio Bovi & Roberto Dell’Anno, 2010. "The changing nature of the OECD shadow economy," Journal of Evolutionary Economics, Springer, vol. 20(1), pages 19-48, January.
    16. Edward Christie & Mario Holzner, 2004. "Household Tax Compliance and the Shadow Economy in Central and Southeastern Europe," wiiw Balkan Observatory Working Papers 38, The Vienna Institute for International Economic Studies, wiiw.
    17. Sanchez Badini, Olivia & Hajjar, Reem & Kozak, Robert, 2018. "Critical success factors for small and medium forest enterprises: A review," Forest Policy and Economics, Elsevier, vol. 94(C), pages 35-45.
    18. Sahnoun, Marwa & Abdennadher, Chokri, 2019. "The nexus between unemployment rate and shadow economy: A comparative analysis of developed and developing countries using a simultaneous-equation model," Economics Discussion Papers 2019-30, Kiel Institute for the World Economy (IfW Kiel).
    19. Sintayehu Tulu Wondimu & Mathewos Woldemariam Birru, 2020. "Determinants Of Informal Economy Estimation In Ethiopia: Multiple-Indicators, Multiple-Causes (Mimic) Approach," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 9(2), pages 65-86.
    20. Petrik Runst, 2013. "Post-Socialist Culture and Entrepreneurship," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(3), pages 593-626, July.

    More about this item

    Keywords

    informal income; inactive population; emigration potential; hidden migration;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D10 - Microeconomics - - Household Behavior - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    Statistics

    Access and download statistics

    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:rjr:romjef:v::y:2010:i:2:p:46-56. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Corina Saman (email available below). General contact details of provider: https://edirc.repec.org/data/ipacaro.html .

    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.