Development Levels of Countries and Driving Forces of the Shadow Economy: Empirical Evidence from Panel Data

International Journal of Economic Perspectives, Volume 11, Issue 1, p. 464-473, 2017

Posted: 17 Aug 2017

See all articles by Gamze Oz Yalama

Gamze Oz Yalama

Eskisehir Osmangazi University

Erdal Gumus

Eskisehir Osmangazi University - Department of Public Finance

Date Written: 2017

Abstract

Shadow economies have been defined as all currently unregistered economic activities that contribute to the officially calculated GDP. All countries do pay greater attention to the size of the shadow economy and the determinants of shadow economy has been an important policy goal in these countries for many years. Thus, the purpose of this paper is to investigate whether the determinants of shadow economy change based on the development level of countries using panel data regression. Empirical findings show that the determinants of shadow economy change are based on the development level of countries. The paper suggests that policies designed to reduce the size of a shadow economy should be formed in considering the development stage of the economy.

Keywords: Shadow Economy; Panel Data; Developing Level

JEL Classification: E26; K42; O17

Suggested Citation

Oz Yalama, Gamze and Gumus, Erdal, Development Levels of Countries and Driving Forces of the Shadow Economy: Empirical Evidence from Panel Data (2017). International Journal of Economic Perspectives, Volume 11, Issue 1, p. 464-473, 2017, Available at SSRN: https://ssrn.com/abstract=3004505

Gamze Oz Yalama

Eskisehir Osmangazi University ( email )

Meselik Kampusu
Atatürk Bulv.
Osmangazi, Eskisehir 24680
Turkey

Erdal Gumus (Contact Author)

Eskisehir Osmangazi University - Department of Public Finance ( email )

Meselik Campus
Eskisehir, 26480
Turkey
+222 239 37 50/1751 (Phone)

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