Shadow economy revisited: logic, morality and intuition in corrupt practices and illegal channels
The aim of the paper is to analyze how corruption contributes to the spread of shadow economy and damages viable economic development of any country. The unfreedoms that are created under the conditions of illegal transactions and corrupt practices considerably limit the opportunities of individuals to develop and use their capabilities (Sen, 2000) to the full extent and make their contribution to the development of their countries’ economies and sociocultural progress. The short-sighted desire to receive gain and extra revenue through illegal actions often obscures the capacity to comprehend the size and extent of the damage that such actions bring to the economic development of the country and sociocultural progress of the society in the long run. Under these conditions, the paper perceives logic (e.g. cost-benefit analysis, pragmatic calculations of profit-making, etc.), morality (i.e. ethical norms) and intuition (i.e. the intuitive decision whether to engage in illegal practices, where the estimation of the degrees of risk and confidence plays significant role) as three important human features that influence individuals’, corporations’ and governments’ decisions whether or not to engage directly or foster indirectly the cultivation of illegal practices. Therefore, the idea that the paper is trying to support is that while analyzing the instances of corruption on any given level (individual, organizational, governmental, or cross-country), the factors of logic, moral and intuition should be all taken into consideration in order to better understand such illegal actions, systems, channels and mechanisms and design more comprehensive fighting strategies against corruption than are offered today by numerous scholars, organizations or public bodies.
|Date of creation:||17 Jan 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mauro, Paolo, 1998. "Corruption and the composition of government expenditure," Journal of Public Economics, Elsevier, vol. 69(2), pages 263-279, June.
- Luis A. Sosa, 2004. "Wages and Other Determinants of Corruption," Review of Development Economics, Wiley Blackwell, vol. 8(4), pages 597-605, November.
- Reinikka, Ritva & Svensson, Jakob, 2006. "Using Micro-Surveys to Measure and Explain Corruption," World Development, Elsevier, vol. 34(2), pages 359-370, February.
- Graf Lambsdorff, Johann, 2005. "Consequences and causes of corruption: What do we know from a cross-section of countries?," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-34-05, University of Passau, Faculty of Business and Economics.
- Rose-Ackerman, Susan, 1975. "The economics of corruption," Journal of Public Economics, Elsevier, vol. 4(2), pages 187-203, February.
- repec:oup:qjecon:v:110:y:1995:i:3:p:681-712 is not listed on IDEAS
- Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
- Andersen, Torben M. & Beier, Niels C., 2005. "International transmission of transitory and persistent monetary shocks under imperfect information," Journal of International Economics, Elsevier, vol. 66(2), pages 485-507, July.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:20391. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.