Corruption and the shadow economy
Subtitle: an empirical analysis
By: by Axel Dreher, Friedrich Schneider
Contributors: Schneider, Friedrich
Series: Discussion paper -- no. 1936; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 1936
Publisher: IZA
Published: 2006
Place of publication: Bonn, Germany
Language: eng
Format: [electronic resource] :
Subjects: Informal sector (Economics); Case studies; Political corruption
Description: "This paper analyzes the influence of the shadow economy on corruption and vice versa. We hypothesize that corruption and shadow economy are substitutes in high income countries while they are complements in low income countries. The hypotheses are tested for a cross-section of 120 countries and a panel of 70 countries for the period 1994-2002. Our results show that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. We also find that stricter regulations increase both corruption and the shadow economy"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Title from PDF file as viewed on 2/9/2006.

Includes bibliographical references.

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