Advanced Search
MyIDEAS: Login to save this paper or follow this series

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

Contents:

Author Info

  • Schneider, Friedrich

    ()
    (University of Linz)

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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp1431.pdf
Download Restriction: no

Bibliographic Info

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

as in new window
Length: 64 pages
Date of creation: Dec 2004
Date of revision:
Publication status: published in: Journal of Population Economics, 2007, 20 (3), 495 - 526
Handle: RePEc:iza:izadps:dp1431

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

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

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. David E. A. Giles, 1998. "Measuring The Hidden Economy: Implications for Econometric Modelling," Econometrics Working Papers, Department of Economics, University of Victoria 9809, Department of Economics, University of Victoria.
  2. Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 1998. "Regulatory Discretion and the Unofficial Economy," American Economic Review, American Economic Association, American Economic Association, vol. 88(2), pages 387-92, May.
  3. Klarita Gerxhani, 1999. "Informal Sector in Developed and less Developed Countries: A Literature Survey," Tinbergen Institute Discussion Papers, Tinbergen Institute 99-083/2, Tinbergen Institute.
  4. Bhattacharyya, Dilip K, 1999. "On the Economic Rationale of Estimating the Hidden Economy," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 109(456), pages F348-59, June.
  5. Adam, M. C. & Ginsburgh, V., 1985. "The effects of irregular markets on macroeconomic policy : Some estimates for belgium," European Economic Review, Elsevier, Elsevier, vol. 29(1), pages 15-33.
  6. Frey, Bruno S & Pommerehne, Werner W, 1984. "The Hidden Economy: State and Prospects for Measurement," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 30(1), pages 1-23, March.
  7. Loayza, Norman A., 1997. "The economics of the informal sector : a simple model and some empirical evidence from Latin America," Policy Research Working Paper Series, The World Bank 1727, The World Bank.
  8. Kirchler, Erich & Maciejovsky, Boris & Schneider, Friedrich, 2003. "Everyday representations of tax avoidance, tax evasion, and tax flight: Do legal differences matter?," Journal of Economic Psychology, Elsevier, Elsevier, vol. 24(4), pages 535-553, August.
  9. David Giles, 1997. "Causality between the measured and underground economies in New Zealand," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 4(1), pages 63-67.
  10. Edgar L. Feige, 2005. "The Underground Economy And The Currency Enigma," Macroeconomics, EconWPA 0502004, EconWPA.
  11. Kaufmann, Daniel & Kaliberda, Aleksander, 1996. "Integrating the unofficial economy into the dynamics of post-socialist economies : a framework of analysis and evidence," Policy Research Working Paper Series, The World Bank 1691, The World Bank.
  12. Schneider, Friedrich, 1986. " Estimating the Size of the Danish Shadow Economy Using the Currency Demand Approach: An Attempt," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 88(4), pages 643-68.
  13. Edgar L. Feige, 2005. "Overseas Holdings Of U.S.Currency And The Underground Economy," Macroeconomics, EconWPA 0501022, EconWPA.
  14. Friedrich Schneider, 2004. "Shadow Economies around the World: What do we really know?," IAW Discussion Papers, Institut für Angewandte Wirtschaftsforschung (IAW) 16, Institut für Angewandte Wirtschaftsforschung (IAW).
  15. Edgar L. Feige, 1986. "A Re-Examination of the "Underground Economy" in the United States: A Comment on Tanzi," IMF Staff Papers, Palgrave Macmillan, vol. 33(4), pages 768-781, December.
  16. Dell'Anno, Roberto, . "Estimating the Shadow Economy in Italy: a Structural Equation Approach," Economics Working Papers, School of Economics and Management, University of Aarhus 2003-7, School of Economics and Management, University of Aarhus.
  17. Michael Alexeev & William Pyle, 2001. "A Note on Measuring the Unofficial Economy in the Former Soviet Republics," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 436, William Davidson Institute at the University of Michigan.
  18. Tanzi, Vito, 1999. "Uses and Abuses of Estimates of the Underground Economy," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 109(456), pages F338-47, June.
  19. Frey, Bruno S & Weck, Hannelore, 1983. "Estimating the Shadow Economy: A 'Naive' Approach," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 23-44, March.
  20. Philip Cagan, 1958. "The Demand for Currency Relative to Total Money Supply," NBER Books, National Bureau of Economic Research, Inc, National Bureau of Economic Research, Inc, number caga58-1.
  21. Clotfelter, Charles T, 1983. "Tax Evasion and Tax Rates: An Analysis of Individual Returns," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 363-73, August.
  22. Klovland, Jan Tore, 1984. " Tax Evasion and the Demand for Currency in Norway and Sweden. Is There a Hidden Relationship?," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 86(4), pages 423-39.
  23. Helberger, Christof & Knepel, Helmut, 1988. "How big is the shadow economy? : A re-analysis of the unobserved-variable approach of B.S. Frey and H. Weck-Hannemann," European Economic Review, Elsevier, Elsevier, vol. 32(4), pages 965-976, April.
  24. Isachsen, Arne Jon & Strom, Steiner, 1985. "The Size and Growth of the Hidden Economy in Norway," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 31(1), pages 21-38, March.
  25. Contini, Bruno B, 1981. "Labor Market Segmentation and the Development of the Parallel Economy-The Italian Experience," Oxford Economic Papers, Oxford University Press, vol. 33(3), pages 401-12, November.
  26. Pissarides, Christopher A. & Weber, Guglielmo, 1989. "An expenditure-based estimate of Britain's black economy," Journal of Public Economics, Elsevier, Elsevier, vol. 39(1), pages 17-32, June.
  27. Klarita G�rxhani, 2004. "The Informal Sector in Developed and Less Developed Countries: A Literature Survey," Public Choice, Springer, Springer, vol. 120(3_4), pages 267-300, 09.
  28. Edgar L. Feige & Robert T. McGee, 2005. "The Unobserved Economy And The Uk Laffer Curve," Macroeconomics, EconWPA 0502013, EconWPA.
  29. Friedman, Eric & Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 2000. "Dodging the grabbing hand: the determinants of unofficial activity in 69 countries," Journal of Public Economics, Elsevier, Elsevier, vol. 76(3), pages 459-493, June.
  30. Petersen, Hans-Georg, 1982. "Size of the Public Sector, Economic Growth and the Informal Economy: Development Trends in the Federal Republic of Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 28(2), pages 191-215, June.
  31. J. J. Thomas, 1986. "The Underground Economy in the United States: A Comment on Tanzi," IMF Staff Papers, Palgrave Macmillan, vol. 33(4), pages 782-789, December.
  32. Philip Cagan, 1958. "The Demand for Currency Relative to Total Money Supply," NBER Chapters, National Bureau of Economic Research, Inc, in: The Demand for Currency Relative to Total Money Supply, pages 1-37 National Bureau of Economic Research, Inc.
  33. Friedrich Schneider & Kausik Chaudhuri & Sumana Chatterjee, 2003. "The Size and Development of the Indian Shadow Economy and a Comparison with other 18 Asian Countries: An Empirical Investigation," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2003-02, Department of Economics, Johannes Kepler University Linz, Austria.
  34. Ahumada, Hildegart & Alvaredo, Facundo & Canavese, Alfredo J., 2006. "The Demand for Currency Approach and the Size of the Shadow Economy: A Critical Assessment," Berkeley Olin Program in Law & Economics, Working Paper Series, Berkeley Olin Program in Law & Economics qt6zn9p98b, Berkeley Olin Program in Law & Economics.
  35. David Giles, 1999. "The rise and fall of the New Zealand underground economy: are the responses symmetric?," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 6(3), pages 185-189.
  36. Annette Mummert & Friedrich Schneider, 2001. "The German Shadow Economy: Parted in a United Germany?," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 58(3), pages 286-, July.
  37. Phillip Cagan, 1958. "The Demand for Currency Relative to the Total Money Supply," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 66, pages 303.
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 in new window

Cited by:
  1. Kar, Saibal & Saha, Shrabani, 2012. "Corruption, Shadow Economy and Income Inequality: Evidence from Asia," IZA Discussion Papers 7106, Institute for the Study of Labor (IZA).
  2. Loayza, Norman V. & Serven, Luis & Sugawara, Naotaka, 2009. "Informality in Latin America and the Caribbean," Policy Research Working Paper Series, The World Bank 4888, The World Bank.
  3. Pääkkönen, Jenni, 2009. "Economic Freedom as a Driver for Growth in Transition," BOFIT Discussion Papers, Bank of Finland, Institute for Economies in Transition 1/2009, Bank of Finland, Institute for Economies in Transition.
  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, Bank of Estonia 2008-06, Bank of Estonia, revised 28 Nov 2008.
  5. Embaye, Abel, 2007. "Underground economy estimates for non-OECD countries using currency demand method, 1984-2005," MPRA Paper 20308, University Library of Munich, Germany.
  6. Evgenia Vassileva, 2007. "Characteristics of Informal Economy and Competitiveness in Transition to Market Economy," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 126-152.
  7. Wietzke, Frank-Borge & McLeod, Catriona, 2013. "Jobs, wellbeing, and social cohesion : evidence from value and perception surveys," Policy Research Working Paper Series, The World Bank 6447, The World Bank.
  8. Alexandros Mourmouras & Peter Rangazas, 2008. "Fiscal Policy and Economic Development," Working Papers, Indiana University-Purdue University Indianapolis, Department of Economics wp200802, Indiana University-Purdue University Indianapolis, Department of Economics.
  9. Lehmann, Hartmut & Pignatti, Norberto, 2007. "Informal Employment Relationships and Labor Market Segmentation in Transition Economies: Evidence from Ukraine," IZA Discussion Papers 3269, Institute for the Study of Labor (IZA).

Lists

This item is featured on the following reading lists or Wikipedia pages:
  1. Talk:List of countries by income equality in Wikipedia English ne '')

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp1431. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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