Shadow Economies and Corruption All Over the World: Revised Estimates for 120 Countries

By Friedrich Schneider, Andreas Buehn. 2007

392 citations recorded by the source corpus.

Abstract Estimations of the shadow economies for 120 countries, including developing, Eastern Europe and Central Asian and high income OECD countries over 1999 to 2006 are presented. The average size of the shadow economy (as a percent of “official” GDP) in 2004/05 in 76 developing countries is 35.5%, in 19 Eastern and Central Asian countries 36.7% and in 25 high income OECD countries 15.5%. An increased burden of taxation and social security contributions, combined with labour market regulations are the driving forces of the shadow economy. Furthermore, the results show that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. Finally, the various estimation methods are discussed and critically evaluated.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/0b628a89c9154848bfeaf291cb90008b4d129903

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Citations in the corpus

Global corruption and the shadow economy: spatial aspects (2014, methodology): “The basic empirical model draws on Dreher and Schneider (2010), and adds spatial dynamics.”
Shadow economies all over the world : new estimates for 162 countries from 1999 to 2007 (2010, methodology): “This study is an attempt to fill this gap by using the same estimation technique and almost the same data sample used in Schneider and Buehn (2009) and Schneider and Enste (2000).”
Prices or Knowledge? What Drives Demand for Financial Services in Emerging Markets? (2011, neutral): “(11)These methods of eliciting time and risk preferences have received some validation: Chabris et al. (2008), for example, find that elicited time preferences weakly predict individual behaviors such as exercising and smoking.”
New Estimates for the Shadow Economies all over the World (2010, methodology): “2 This definition is used for example, by Feige ( 1989 , 1994 ), Schneider ( 2005 , 2007 ), Feld and Schneider (2010) and Frey and Pommerehne (1984) .”
Economic and political institutions and entry into formal and informal entrepreneurship (2014, neutral): “They explored the effect of the shadow economy on the growth orientation of entrepreneurial new firms, using GEM data and the Schneider and Buehn (2009) estimate of the size of the shadow economy, and found a curvilinear, U-shaped effect of the shadow economy on the prevalence of entrepreneurial…”