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Driven underground by (mis)trust?

Author

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  • Aziz N. Berdiev
  • James W. Saunoris

Abstract

Studies have shown that economic and institutional variables are among the causes of underground activities. However, the effect of cultural variables such as trust on informality and, in particular, informal entrepreneurship, have been less explored. Using unique cross-national data, we study the influence of generalized trust on underground entrepreneurship. We find that nations with higher trust are associated with less informal entrepreneurship.

Suggested Citation

  • Aziz N. Berdiev & James W. Saunoris, 2020. "Driven underground by (mis)trust?," Applied Economics Letters, Taylor & Francis Journals, vol. 27(4), pages 286-290, February.
  • Handle: RePEc:taf:apeclt:v:27:y:2020:i:4:p:286-290
    DOI: 10.1080/13504851.2019.1613497
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    Cited by:

    1. Paraskevi Koufopoulou & Colin C. Williams & Athanassios Vozikis & Kyriakos Souliotis & Antonios Samprakos, 2021. "Estimating Shadow Economy Size in Greece 2000 - 2018: A Flexible MIMIC Approach," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(3-4), pages 23-47, July-Dece.
    2. Aziz N. Berdiev & James W. Saunoris, 2023. "The case for independence: Does central bank independence curb the spread of the underground economy?," Kyklos, Wiley Blackwell, vol. 76(3), pages 407-435, August.

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