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Public governance and shadow economy in Central and Eastern European countries

Author

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  • Yilmaz BAYAR

    () (Associate Professor; Usak University; Uºak; Turkey)

Abstract

Nearly all the countries face to shadow economy with different sizes and try to keep the shadow economy at a minimum level considering its possible negative impacts on their economies. This study researches the relationship among various indicators of public administration and shadow economy in 11 Central and Eastern European economies during 2003-2014 period employing panel regression. We found that improvements in public administration and EU membership affected shadow economy negatively, while crises affected shadow economy positively.

Suggested Citation

  • Yilmaz BAYAR, 2016. "Public governance and shadow economy in Central and Eastern European countries," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2016(27), pages 62-73, Decembre.
  • Handle: RePEc:rom:rampas:v:2016:y:2016:i:27:p:62-73
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    File URL: http://www.ramp.ase.ro/en/_data/files/articole/2016/27-04.pdf
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    References listed on IDEAS

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    1. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    2. Axel Dreher & Friedrich Schneider, 2010. "Corruption and the shadow economy: an empirical analysis," Public Choice, Springer, vol. 144(1), pages 215-238, July.
    3. Restrepo-Echavarria, Paulina, 2015. "Measuring Underground Economy Can Be Done, but It Is Difficult," The Regional Economist, Federal Reserve Bank of St. Louis, issue Jan.
    4. Axel Dreher & Christos Kotsogiannis & Steve McCorriston, 2009. "How do institutions affect corruption and the shadow economy?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(6), pages 773-796, December.
    5. Torgler, Benno & Schneider, Friedrich, 2009. "The impact of tax morale and institutional quality on the shadow economy," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 228-245, April.
    6. James Alm & Abel Embaye, 2013. "Using Dynamic Panel Methods to Estimate Shadow Economies Around the World, 1984-2006," Working Papers 1303, Tulane University, Department of Economics.
    7. Schneider, Friedrich G., 2007. "Shadow Economies and Corruption All Over the World: New Estimates for 145 Countries," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 1, pages 1-66.
    8. Ulrich Thiessen, 2010. "The Shadow Economy in International Comparison: Options for Economic Policy Derived from an OECD Panel Analysis," International Economic Journal, Taylor & Francis Journals, vol. 24(4), pages 481-509.
    9. Armenia ANDRONICEANU, 2013. "Ethical Values and the Human Resources Behaviour in Public Management," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2013(20), pages 49-61, June.
    10. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 239-253.
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    Cited by:

    1. repec:ssi:jouesi:v:6:y:2018:i:2:p:692-710 is not listed on IDEAS
    2. repec:rsr:journl:v:65:y:2017:i:2:p:21-41 is not listed on IDEAS

    More about this item

    Keywords

    Institutional development; shadow economy; panel regression; Central and Eastern European Countries.;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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