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The size and development of the shadow economy in Bangladesh: An empirical investigation

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  • Jalal Siddiki

    (Kingston University London)

Abstract

The paper estimates the size of the shadow economy in Bangladesh by applying the multiple indicator multiple cause model to time series data from 1975-2010. The estimated size of the shadow economy ranges from 13.47% in 1984 to 37% in 2010. Taxes are one of the key drivers while monetization reduces the size of the shadow economy in Bangladesh.

Suggested Citation

  • Jalal Siddiki, 2013. "The size and development of the shadow economy in Bangladesh: An empirical investigation," Economics Discussion Papers 2013-3, School of Economics, Kingston University London.
    • Handle: RePEc:ris:kngedp:2013_003
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    File URL: https://eprints.kingston.ac.uk/28656/1/Siddiki-J-28656.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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