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

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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.

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  • Siddiki, Jalal, 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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    More about this item

    Keywords

    Shadow economy; MIMIC model; Bangladesh.;
    All these keywords.

    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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