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Shadow Economies Around the World: Size, Causes, and Consequences
Author:
Mr. Friedrich Schneidernull

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and
Dominik Enstenull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2000: Issue 026
Language:
English
Publication Date:
01 Jan 2000
DOI:
https://doi.org/10.5089/9781451844375.001
ISBN:
9781451844375
ISSN:
1018-5941
Pages:
56
Keywords:
WP; shadow economy; tax burden; labor force; economic activity; indirect tax
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper presents estimates of the size of the shadow economy in 76 developing, transition, and OECD countries, which are derived by combining figures from different estimation methods. We describe and discuss the strengths and weaknesses of the different estimation methods. We find that the growth of the shadow economy—which is now remarkably large in the 76 countries—is strongly related to increasing burdens of taxation and social security contributions, as well as to the extent of state regulatory activities. Rising corruption also has a clearly positive impact on the growth of the shadow economy.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2000: Issue 026