The Parallel Economy in Malawi: Size, Effect on Tax Revenue and Policy Options
AbstractThis study looks at the dynamics of the Parallel Economy. I estimate the size of the Parallel Economy in Malawi and its relationship with Tax Revenues. The Parallel Economy in Malawi was 12.3%, 23.1% and 17.3% of GDP in the 1970s, 1980s, and 1990s respectively. Income Taxes were a major driver of the Parallel Economy as compared to Import and Consumption Taxes. An increase in Tax Revenue led to an increase in the Parallel Economy and a decrease in tax Revenue led to a decrease in the Parallel Economy.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 9860.
Date of creation: 12 Mar 2007
Date of revision:
Parallel Economy; Official Economy; Tax Revenue;
Find related papers by JEL classification:
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
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