IDEAS home Printed from https://ideas.repec.org/a/taf/jpolrf/v26y2023i4p442-460.html
   My bibliography  Save this article

Government expenditure, budget deficit and shadow economy

Author

Listed:
  • Duc Hong Vo
  • Ngoc Phu Tran
  • Toan Pham-Khanh Tran
  • Quan Thai-Thuong Le
  • Phuc Van Nguyen

Abstract

The shadow economy has emerged as a challenging issue for countries globally, particularly emerging markets. An increased budget deficit prevents the governments from using public expenditure to control the increased shadow economy. This paper examines the effect of government expenditure on the shadow economy and the moderating role of budget deficit affecting this impact for the ASEAN-7 countries from 1990 to 2019. We find that increased government spending is associated with an increased shadow economy in ASEAN countries. Interestingly, the effects of government expenditure on the shadow economy intensify with increased budget deficit in the short and long term.

Suggested Citation

  • Duc Hong Vo & Ngoc Phu Tran & Toan Pham-Khanh Tran & Quan Thai-Thuong Le & Phuc Van Nguyen, 2023. "Government expenditure, budget deficit and shadow economy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 26(4), pages 442-460, October.
    • Handle: RePEc:taf:jpolrf:v:26:y:2023:i:4:p:442-460
    DOI: 10.1080/17487870.2023.2268250
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17487870.2023.2268250
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17487870.2023.2268250?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.

    More about this item

    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:taf:jpolrf:v:26:y:2023:i:4:p:442-460. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GPRE19 .

    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.