Shedding Light on the Driving Forces of the Romanian Shadow Economy: An Empirical Investigation Based on the MIMIC Approach

2019 ◽  
pp. 87-110
Author(s):  
Adriana AnaMaria Davidescu ◽  
Friedrich Schneider
Keyword(s):  
Empirical Investigation ◽  
Shadow Economy ◽  
Driving Forces ◽  
Mimic Approach

scholarly journals The shadow economy in three Mediterranean countries: France, Spain and Greece. A MIMIC approach

2007 ◽  
Vol 33 (1) ◽  
pp. 197-197 ◽  
Author(s):  
Roberto Dell’Anno ◽  
Miguel Gómez-Antonio ◽  
Angel Alañon-Pardo
Keyword(s):  
Shadow Economy ◽  
Mediterranean Countries ◽  
Mimic Approach

scholarly journals DOES THE SHADOW ECONOMY AFFECT FOREIGN DIRECT INVESTMENT? CASE STUDY OF POLAND AND POLISH REGIONS

2021 ◽  
pp. 22-39
Author(s):  
Andrzej Buszko
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Shadow Economy ◽  
Pearson Correlation ◽  
Positive Association ◽  
Correlation Index ◽  
Regional Associations ◽  
The Relationship ◽  
Mimic Approach

The main goal of the research was to identify the relationship between the level of shadow economy and Foreign Direct Investment. The research was carried in Poland and Polish regions during 1990-2020. MIMIC approach was employed to calculate the level of shadow economy as a % of Polish and regional GDP. Pearson correlation index and Kolmogrov-Smirnov test were applied as well. The study proved there is a sound negative correlation (-0,636) between the shadow economy and foreign direct investment in Poland, but regional associations between those two variables demonstrated different results. Unlike in other Polish provinces, in Opolskie and Podkarpackie the correlation index confirmed a positive association between the level of shadow economy and FDI flow.

scholarly journals Cash in Circulation and the Shadow Economy: An Empirical Investigation for Euro Area Countries and Beyond

2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Franz Seitz ◽  
Hans-Eggert Reimers ◽  
Friedrich Schneider
Keyword(s):  
Euro Area ◽  
Empirical Investigation ◽  
Shadow Economy

Estimating shadow economy in Tanzania: an analysis with the MIMIC approach

2018 ◽  
Vol 45 (1) ◽  
pp. 100-113 ◽  
Author(s):  
Roberto Dell’Anno ◽  
Adriana AnaMaria Davidescu ◽  
Nguling’wa Philip Balele
Keyword(s):  
Government Spending ◽  
Latent Variable ◽  
Shadow Economy ◽  
Small Sample Size ◽  
Small Sample ◽  
Content Type ◽  
The Government ◽  
Statistical Relationships ◽  
Monetary Models ◽  
Mimic Approach

Purpose The purpose of this paper is to estimate the Tanzanian shadow economy (SE) from 2003 to 2015 and test the statistical relationships between the SE and its potential causes and indicators. Design/methodology/approach The econometric analysis is based on a multiple indicators multiple causes (MIMIC) model. To calibrate the SE from the estimates, the authors adopt the value of 55.4 percentage of the SE to official GDP from the literature for the base year 2005. Findings The SE ranges from 52 to 61 per cent of official GDP and slightly decreases from 2013 to 2015. Increase in inflation, unemployment and government spending were the main drivers of the SE dynamics. Research limitations/implications Given the challenges facing estimation of the SE (e.g. small sample size, exogenous estimate to calibrate the model, meaning of the latent variable), quantification of SE should be considered to be rough measures. Practical implications To lower the size of the SE, the government needs to keep inflation and unemployment stable over time, to reduce government spending because it creates pressure on tax collection due to the limited tax base. Originality/value This is the first study specifically focused on Tanzanian SE based on the MIMIC approach. Existing estimates of Tanzanian SE are calculated by monetary models or apply a common MIMIC specification to the worldwide context.

Shadow economy in a turbulent environment: evidence from Poland

2018 ◽  
Vol 21 (3) ◽  
pp. 328-339 ◽  
Author(s):  
Bogdan Mróz
Keyword(s):  
Informal Sector ◽  
Tobacco Industry ◽  
Shadow Economy ◽  
Driving Forces ◽  
Economic Activities ◽  
Think Tank ◽  
Content Type ◽  
Economic Agents ◽  
Insight Into

Purpose The purpose of this paper is to provide an empirical insight into the functioning of the informal sector in Poland and highlight the reasons for involvement of economic agents in the new forms of the shadow economy. Design/methodology/approach The paper is focused on the analysis of different manifestations of unregistered economic activities in Poland. The author draws upon the latest available research findings on the subject including shadow economy estimates. Finally, the case study analysis of the tobacco industry in Poland has been used to exemplify and highlight the driving forces conducive to the expansion of the informal sector. Findings The informal sector’s share of the Polish economy in the years 2010-2015 was put as ranging between 12.1 per cent gross domestic product (GDP) and 14.5 per cent GDP (with the peak in 2013) by the GUS (Polish Main Statistical Office), between 19.2 per cent GDP and 21.1 per cent GDP by the IBnGR think tank (peak in 2012) and between 23.3 per cent and 25.4 per cent GDP by Professor F. Schneider. Research limitations/implications The case study of the tobacco industry, although well illustrates the dynamics of the shadow economy, does not provide a comprehensive picture of the Poland’s informal sector. Practical implications The paper provides tips and recommendations aimed at reducing the size of the shadow economy. Social implications Reducing the size of the informal sector could strengthen the social integrity and cohesion. Originality/value The paper provides insight into new areas and manifestations of the shadow economy in Poland exemplified by the case study of the tobacco industry.

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