Highlighting the Driving Forces of the Shadow Economy Among EU Countries: An Empirical Investigation Based on the MIMIC Approach

2022 ◽  
pp. 161-189
Author(s):  
Adriana AnaMaria Davidescu ◽  
Friedrich Schneider
Keyword(s):  
Empirical Investigation ◽  
Shadow Economy ◽  
Driving Forces ◽  
Eu Countries ◽  
Mimic Approach

scholarly journals Driving forces of economic growth in the second decade of transition

2010 ◽  
Vol 55 (185) ◽  
pp. 7-32 ◽  
Author(s):  
Radmila Dragutinovic-Mitrovic ◽  
Olgica Ivancev
Keyword(s):  
Economic Growth ◽  
Driving Forces ◽  
Initial Conditions ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Structural Reforms ◽  
Lower Growth ◽  
Eu Countries ◽  
Slowing Down ◽  
Eu Membership

This paper examines driving forces of economic growth in the second transition decade, by testing which determinants from the first decade remain dominant, and which new factors appear in explaining growth. To this end a panel simultaneous equation model is estimated based on a sample of 27 transition countries in the period 1999- 2009. According to the main findings of the paper initial conditions do not play a role in determining economic growth in the second decade, but macroeconomic stabilization and structural reforms still matter. However, in contrast to the first decade, the overall impact of structural reforms is not positive, indicating that difficult progress with reforms in the second decade could slow down economic growth. Moreover, EU membership seems to have the additional effect of slowing down the growth of the accessing countries, meaning that once a transition country becomes an EU member it has a similar growth path to other EU countries in terms of lower growth rates. All this indicates that only countries that undertook fast reforms in the early phase of transition experienced significant benefits from reforms, achieving higher levels of economic development and becoming closer to developed EU countries. Finally, investments and openness of the economy appear as new important determinants of growth.

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

Shadow economy and tax evasion in the EU

2015 ◽  
Vol 18 (1) ◽  
pp. 34-51 ◽  
Author(s):  
Friedrich Schneider ◽  
Konrad Raczkowski ◽  
Bogdan Mróz
Keyword(s):  
European Union ◽  
Tax Evasion ◽  
Shadow Economy ◽  
Alternative Methods ◽  
Statistical Research ◽  
Content Type ◽  
Eu Countries ◽  
Self Employment ◽  
European Union Countries ◽  
The Eu

Purpose – The main purpose of this paper is to explore size of the shadow economy of 31 European Countries in 2014 and size of the shadow economy of 28 European Union countries over 2003-2014 (in per cent of official GDP). An additional objective is to identify tax evasion, as the problem of all the EU countries, answering the questions how better combat the tax fraud. Design/methodology/approach – Estimates of the shadow economy for all 28 European Union countries and other three countries from Europe, i.e. Norway, Switzerland and Turkey – MIMIC method was applied. Findings – The average size of the shadow economy in 28 EU countries was 22.6 per cent in 2003 and decreased to 18.6 per cent (of official GDP) in 2014. We also consider the most important driving forces of the shadow economy. The biggest ones are with 14.6 per cent unemployment and self-employment, followed by tax morale with 14.5 per cent and GDP growth with 14.3 per cent. The proportion of tax evasion (accounting for indirect taxation and self-employment activities) was on average 4.2 per cent (of official GDP) in Poland, 1.9 per cent in Germany and 2.9 per cent in the Czech Republic. Research limitations/implications – The MIMIC statistics do not address a large part of the wholly illegal economy (of typically criminal nature) and, accordingly, it is not an absolute magnitude of the whole unofficial economy. However, it does not seem that other, alternative, methods of measuring the unofficial economy are better in individual terms. Practical implications – Current statistical research should lead to practical acceptance in the framework of need for developing better organizational & legal ways for multi-level governance within the European Union, leading to effective methods of counteracting – in particular intra-Union fraud. In addition, the presentation of a review of typology of the main theories and studies regarding the unofficial economy aspects relating to tax evasion constitutes a practical review of the pursued research areas. Social implications – Safeguarding the national economy as a whole, by seeking ways of reducing the scope of shadow economy. Originality/value – Both regarding presentation of the latest shadow economy estimates and typology of its main studies and theories.

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
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