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The non-observed economy and economic growth: A meta-analysis

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  • Afonso, Oscar
  • Neves, Pedro Cunha
  • Pinto, Tiago

Abstract

Academics, politicians, the public in general and researchers have great interest in the non-observed economy. However, there is divergence in its definition, accounting methodology and economic effects. In this paper we conduct a meta-analysis on the empirical literature that estimates the impact of the parallel economy on economic growth. We conclude that there is no publication bias and that the average effect of the parallel economy on economic growth is insignificant. However, the reported effects differ considerably with the type and number of countries included in the sample of primary studies, the structure of the data, the methodology used to measure the parallel economy, the number of citations of primary studies, and the year they were published.

Suggested Citation

  • Afonso, Oscar & Neves, Pedro Cunha & Pinto, Tiago, 2020. "The non-observed economy and economic growth: A meta-analysis," Economic Systems, Elsevier, vol. 44(1).
  • Handle: RePEc:eee:ecosys:v:44:y:2020:i:1:s0939362520300066
    DOI: 10.1016/j.ecosys.2020.100746
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    More about this item

    Keywords

    Economic growth; Parallel economy; Non-observed economy; Meta-analysis; Publication bias;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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