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The Black Economy In Turkey: An Empirical Investigation

Author

Listed:
  • Ferda Halicioglu

    (The University of Greenwich, London)

Abstract

The existing economic literature on the black economy and its measurable size is mainly based on industrialized western countries. This paper, however, tries to estimate the size of the black economy empirically in the case of a developing country: Turkey. According to the monetary approach that this paper has also adopted, the size of the black economy in Turkey has an ever increasing trend and reached nearly 10% of its GNP in 1997. Moreover, this paper also suggests that there is further scope for the black economy in Turkey since the tax burden is relatively low. And currently, the Turkish government is trying to increase taxes, which may lead to a further expansion in the size of the black economy in Turkey.

Suggested Citation

  • Ferda Halicioglu, 2005. "The Black Economy In Turkey: An Empirical Investigation," Macroeconomics 0503011, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0503011
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    References listed on IDEAS

    as
    1. Edgar L. Feige, 1986. "A Re-Examination of the "Underground Economy" in the United States: A Comment on Tanzi," IMF Staff Papers, Palgrave Macmillan, vol. 33(4), pages 768-781, December.
    2. Philip Cagan, 1958. "The Demand for Currency Relative to Total Money Supply," NBER Chapters, in: The Demand for Currency Relative to Total Money Supply, pages 1-37, National Bureau of Economic Research, Inc.
    3. Frey, Bruno S & Weck, Hannelore, 1983. "Estimating the Shadow Economy: A 'Naive' Approach," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 23-44, March.
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    Cited by:

    1. Roberto Dell'Anno & Ferda Halicioglu, 2010. "An ARDL model of unrecorded and recorded economies in Turkey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 37(6), pages 627-646, November.

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    More about this item

    Keywords

    black economy; monetary policy; Turkey;
    All these keywords.

    JEL classification:

    • E - Macroeconomics and Monetary Economics

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