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Shadow economy and international software piracy

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Author Info

  • Rajeev K. Goel
  • Michael A. Nelson

Abstract

This article uses pooled data over the period 2004--2007 on about 100 nations to examine the impact of the shadow economy on the piracy of computer software. Results support the main hypothesis that a larger shadow economy leads to higher rates of software piracy. This claim is supported by various robustness checks. A 10% increase in the shadow sector increases software piracy about 1.4%. In other findings, greater economic prosperity and greater internet diffusion check piracy, while some legal institutional measures have statistically insignificant effects. Policy implications are discussed.

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File URL: http://hdl.handle.net/10.1080/09603107.2012.690848
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Financial Economics.

Volume (Year): 22 (2012)
Issue (Month): 23 (December)
Pages: 1951-1959

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Handle: RePEc:taf:apfiec:v:22:y:2012:i:23:p:1951-1959

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Cited by:
  1. Goel, Rajeev K. & Herrala, Risto & Mazhar, Ummad, 2013. "Institutional quality and environmental pollution: MENA countries versus the rest of the world," Economic Systems, Elsevier, vol. 37(4), pages 508-521.

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