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Does the Shadow Economy Kuznets Curve Exist for Russian Regions?

In: Global Versus Local Perspectives on Finance and Accounting

Author

Listed:
  • Anna Kireenko

    (Ural Federal University)

  • Ekaterina Nevzorova

    (Baikal State University)

  • Denis Alekseev

    (Charles University, CERGE-EI)

Abstract

The authors present the results of testing the hypothesis on the existence of the inverted U-shaped interrelation between the scale of the shadow economy in Russian regions and the share of urban population in the total population. The research method aims to analyze the approximating curves built with the scatter plot. The research uses the data of Rosstat and our original calculations of shadow economy scales in Russian regions in 2002–2013. The hypothesis on the existence of the inverted U-shaped interrelation is generally confirmed for the shadow economy scale calculated by the tax-method. This interrelation does not have a clear U-shape, but it is expressed as inverted for the shadow economy scale calculated by the MIMIC-method. The authors make a conclusion that the migration of population from countryside to cities and the increase of urban population will further contribute to the growth of shadow economy scale in the less urbanized regions and to the decrease of its scale for the regions with middle (at present) level of urbanization.

Suggested Citation

  • Anna Kireenko & Ekaterina Nevzorova & Denis Alekseev, 2019. "Does the Shadow Economy Kuznets Curve Exist for Russian Regions?," Springer Proceedings in Business and Economics, in: David Procházka (ed.), Global Versus Local Perspectives on Finance and Accounting, pages 153-166, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-11851-8_15
    DOI: 10.1007/978-3-030-11851-8_15
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