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The Size and Development of the Shadow Economy around the World and Relation to the Hard-to-Tax

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  • Friedrich Schneider

Abstract

Using various methods estimates about the size of the shadow economy in 110 developing, transition and OECD countries are presented. The average size of the shadow economy (in percent of official GDP) over 1999-2000 in developing countries is 41%, in transition countries 38% and in OECD countries 18.0%. An increasing burden of taxation and social security contributions combined with rising state regulatory activities are the driving forces for the growth and size of the shadow economy (labor force).

Suggested Citation

  • Friedrich Schneider, 2003. "The Size and Development of the Shadow Economy around the World and Relation to the Hard-to-Tax," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0324, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  • Handle: RePEc:ays:ispwps:paper0324
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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp0324.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Friedrich Schneider & Robert Klinglmair, 2004. "Shadow economies around the world: what do we know?," Economics working papers 2004-03, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Colin C. Williams, 2014. "Confronting the Shadow Economy," Books, Edward Elgar Publishing, number 15370.
    3. Jean-François Brun & Maïmouna Diakite, 2016. "Tax Potential and Tax Effort: An Empirical Estimation for Non-resource Tax Revenue and VAT’s Revenue," Working Papers halshs-01332053, HAL.
    4. Jean-Louis COMBES & Gérard CHAMBAS & Jean-François BRUN, 2006. "Recettes publiques des pays en développement. Méthode d’évaluation," Working Papers 200611, CERDI.
    5. Suslov, N. & Mel'tenisova, E., 2015. "Analysis of Energy Price's Impact on Shadow Economies Around the World," Journal of the New Economic Association, New Economic Association, vol. 27(3), pages 12-43.
    6. repec:gam:jsusta:v:10:y:2018:i:10:p:3518-:d:173007 is not listed on IDEAS
    7. Richard M. Bird & Sally Wallace, 2003. "Is It Really so Hard to Tax the Hard-to-Tax? The Context and Role of Presumptive Taxes," International Tax Program Papers 0307, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.
    8. Ioana M. PETRESCU, 2016. "The Effects of Economic Sanctions on the Informal Economy," Management Dynamics in the Knowledge Economy Journal, College of Management, National University of Political Studies and Public Administration, vol. 4(4), pages 623-648, December.

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