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How Participating In The Shadow Economy Affects The Growth Of Latvian Firms

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  • Nino Kokashvili, Irakli Barbakadze, Ketevani Kapanadze
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    This paper examines the relationship between the growth of Latvian firms and their involvement in the shadow economy in 2015. When up to 10% of the overall economic activity of firms is in the shadow economy, this had a growth-enhancing effect on firms that recorded non-positive growth during the last five years. Using the perceptions of corruption and interview languages as instruments of measuring the shadow economy participation rate, the authors conclude that there is a positive relationship between perceptions of corruption and the shadow economy participation rate.

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    File URL: http://www.mtk.ut.ee/sites/default/files/mtk/RePEc/mtk/febpdf/febawb101.pdf
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    Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 101.

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    Length: 28 pages
    Date of creation: 2017
    Handle: RePEc:mtk:febawb:101
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