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The Size of the Shadow Economies of 145 Countries all over the World: First Results over the Period 1999 to 2003

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Author Info
Schneider, Friedrich () (University of Linz and IZA Bonn)

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Abstract

Using the DYMIMIC approach, estimates of the shadow economy in 145 developing, transition, developed OECD countries, South Pacific islands and still communist countries are presented. The average size of the shadow economy (in percent of official GDP) over 2002/2003 in developing countries is 39.1%, in transition countries 40.1%, in OECD countries 16.3%, South Pacific islands 33.4% and 4 remaining Communist countries 21.8%. An increasing burden of taxation, high unemployment and low official GDP growth are the driving forces of the shadow economy.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1431.

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Length: 64 pages
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1431

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Related research
Keywords: shadow economy; tax burden; government regulation; DYMIMIC method;

Find related papers by JEL classification:
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
H2 - Public Economics - - Taxation, Subsidies, and Revenue
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  6. Giles, David E A, 1999. "The Rise and Fall of the New Zealand Underground Economy: Are the Responses Symmetric?," Applied Economics Letters, Taylor and Francis Journals, vol. 6(3), pages 185-89, March. [Downloadable!] (restricted)
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    Other versions:
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    Other versions:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Loayza, Norman V. & Serven, Luis & Sugawara, Naotaka, 2009. "Informality in Latin America and the Caribbean," Policy Research Working Paper Series 4888, The World Bank. [Downloadable!]
  2. Hartmut Lehmann & Norberto Pignatti, 2008. "Informal Employment Relationships and Labor Market Segmentation in Transition Economies: Evidence from Ukraine," ESCIRRU Working Papers 3, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  3. Pääkkönen, Jenni, 2009. "Economic Freedom as a Driver for Growth in Transition," BOFIT Discussion Papers 1/2009, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
  4. Jaanika Meriküll & Karsten Staehr, 2008. "Unreported employment and tax evasion in mid-transition : comparing developments and causes in the Baltic States," Bank of Estonia Working Papers 2008-06, Bank of Estonia, revised 28 Nov 2008. [Downloadable!]
  5. Peter Rangazas & Alex Mourmouras, 2008. "Fiscal Policy and Economic Development," IMF Working Papers 08/155, International Monetary Fund. [Downloadable!]
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