Shadow Economy and Economic Growth in Turkey

2017 ◽  
pp. 269-278
Author(s):  
Ahmet Salih Ikiz
Keyword(s):  
Economic Growth ◽  
Shadow Economy

Has the low level of economic growth spurred informal sector activities in Uganda? An empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Esaku
Keyword(s):  
Economic Growth ◽  
Informal Sector ◽  
Shadow Economy ◽  
Time Series Data ◽  
Series Data ◽  
Content Type ◽  
Low Level ◽  
Revenue Collection ◽  
Long Run ◽  
Short Run

PurposeIn this paper, the authors examine how economic growth shapes the shadow economy in the long and short run.Design/methodology/approachUsing annual time series data from Uganda, drawn from various data sources, covering the period from 1991 to 2017, the authors apply the ARDL modeling approach to cointegration.FindingsThis paper finds that an increase in economic growth significantly reduces the size of the shadow economy, in both the long and short run, all else equal. However, the long-run relationship between the shadow economy and growth is non-linear. The results suggest that the rise of the shadow economy could partially be attributed to the slow and sluggish rate of economic growth.Practical implicationsThese findings imply that addressing informality requires addressing underlying factors of underdevelopment since improvements in economic growth also translate into a reduction in the size of the shadow economy in the short and long run.Originality/valueThese findings reveal that the low level of economic growth is an issue because it spurs informal sector activities in the short run. However, as the economy improves, it becomes an incentive for individuals to operate in the informal sector. Additionally, tackling shadow activities in the short run could help improve tax revenue collection.

Shadow Economy, Corruption, and Economic Growth: An Empirical Analysis

2019 ◽  
Vol 47 (3) ◽  
pp. 276-294 ◽  
Author(s):  
Nedra Baklouti ◽  
Younes Boujelbene
Keyword(s):  
Economic Growth ◽  
Least Squares ◽  
Public Administration ◽  
Method Of Moments ◽  
Fixed Effects ◽  
Shadow Economy ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Negative Effects ◽  
Considerable Debate

There is considerable debate over the effects of both corruption and shadow economy on growth, but few studies have considered how the interaction between them might affect economic growth. We study how corruption levels in public administration affect economic growth and how this effect depends on the shadow economy. Using Ordinary Least Squares (OLS), fixed effects, and system generalized method of moments (GMM) on a dataset of 34 OECD countries over the period 1995-2014. The estimation results indicate that increased corruption and a larger shadow economy lead to decrease in economic growth. Results additionally indicate that the shadow economy magnifies the effect of corruption on economic growth. These results imply significant complementarities between corruption and the shadow economy, suggesting that the reduction of corruption will lead to a fall in the size of the shadow economy and will also reduce the negative effects of corruption on economic growth through the underground economy.

scholarly journals CURRENT STATE AND TRENDS OF THE SHADOW SECTOR OF THE ECONOMY I

2020 ◽  
Vol 3 (49) ◽  
pp. 47-54
Author(s):  
Inna Tiutiunyk ◽  
◽  
Andrii Zolkover ◽  
Oleksii Lyulyov ◽  
Serhii Lyeonov ◽  
...  
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Economic Development ◽  
Shadow Economy ◽  
Unified Approach ◽  
Financial Flows ◽  
Capital Outflow ◽  
Advantages And Disadvantages ◽  
Current Trends ◽  
Current State

Current trends in economic development of most countries highlight the need to improve existing tools for their economic growth and sustainable development. An important aspect in this direction is the implementation of the policy of de-shadowing of the economy. The article analyzes the current world trends in the functioning of the shadow economy, identifies the most common schemes of shadow capital withdrawal and approaches to their classification. The systematization of the existing methodical approaches to the assessment of the level of shadowing of the economy is carried out, their advantages and disadvantages are determined. The expediency of developing a unified approach to estimating the volume of shadow financial flows, which is based on taking into account the multi-channel schemes of shadow capital outflow, is substantiated.

scholarly journals Influence of the shadow economy on economic growth

2018 ◽  
Vol 16 (1) ◽  
pp. 87-94
Author(s):  
Olga Mandroshchenko ◽  
Yulee Malkova ◽  
Tatyana Tkacheva
Keyword(s):  
Economic Growth ◽  
Shadow Economy

scholarly journals Rule of Law, Economic Growth and Shadow Economy in Transition Countries

2020 ◽  
Vol 7 (4) ◽  
pp. 145-154
Author(s):  
Thi Thuy Huong LUONG ◽  
◽  
Tho Minh NGUYEN ◽  
Thi Anh Nhu NGUYEN
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Shadow Economy ◽  
Transition Countries

scholarly journals Assessing the Role of Digital Finance on Shadow Economy and Financial Instability: An Empirical Analysis of Selected South Asian Countries

Mathematics ◽  
2021 ◽  
Vol 9 (23) ◽  
pp. 3018
Author(s):  
Aamir Aijaz Syed ◽  
Farhan Ahmed ◽  
Muhammad Abdul Kamal ◽  
Juan E. Trinidad Segovia
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Financial Stability ◽  
Shadow Economy ◽  
Emerging Countries ◽  
Financial Inclusion ◽  
Estimation Methods ◽  
Financial Instability ◽  
Systematic Risks

The advancement in fintech technological development in emerging countries has accelerated the role of digital finance in economic development. Digital finance assists in financial inclusion; however, it may also increase the chances of financial instability due to systematic risks. Emerging countries are also in the clutches of shadow economic growth, which reduces taxable income revenue and creates pressure on financial inclusion prospects. The current study attempts to measure the impact of digital finance on the shadow economic growth and financial stability among the selected South Asian emerging countries. We have used the CUP-FM and CUP-BC estimation methods to measure the above relationship on two model frameworks from 2004 to 2018, with the former measuring the influence of digital finance on the shadow economy and the latter examining the relationship between digital finance and financial stability. In addition, the second-generation unit root test, and the Westerlund cointegration analysis are also employed to confirm the stationarity and cointegration among the variables. The result of the Westerlund’s cointegration confirms a long cointegration between the explanatory and outcome variables. Furthermore, the long-run estimation results conclude that an increase in digital finance helps in reducing the growth of the shadow economy among the selected sample countries. However, it also increases the likelihood of systematic risks and increases financial instability. The study also reveals that the control variables like unemployment and industrial productivity also have a significant influence on financial stability and the shadow economy. The findings will assist readers in comprehending how digital finance influences the shadow economy and promotes financial inclusion and stability in emerging nations.

scholarly journals The Impact of the Credit Crunch and Shadow Economy on Economic Growth in Libya: Evidence from ARDL

2020 ◽  
Vol 04 (01) ◽  
pp. 49-63
Author(s):  
Wan Ahmad Wan Omar ◽  
Nawal Omar Al-Towati ◽  
Harith Amlus
Keyword(s):  
Economic Growth ◽  
Shadow Economy ◽  
Credit Crunch ◽  
The Impact
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