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Shadow Economies: Size, Causes, and Consequences

Schneider, Friedrich, Enste, Dominik H·2000·Journal of Economic Literature

Abstract

Using various methods, the size of the shadow economy in 76 developing, transition, and OECD countries is estimated. Average size varies from 12 percent of GDP for OECD countries, to 23 percent for transition countries and 39 percent for developing countries. Increasing taxation and social security contributions combined with rising state regulations are driving forces for the increase of the shadow economy, especially in OECD countries. According to some findings, corruption has a positive impact on the size of the shadow economy, and a growing shadow economy has a negative effect on official GDP growth.

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Metadata

Authors
Schneider, F., & Enste, D. H.
Venue
Journal of Economic Literature
Published
2000-03-01
Volume
38
Issue
1
Pages
77-114
ISSN
0022-0515 (ISSN-L)
OpenAlex
W2031626068
Cited by
3,024
References
1
FWCI
139.21
Type
journal article
Language
en
Open access
closed

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Schneider, F., & Enste, D. H. (2000). Shadow Economies: Size, Causes, and Consequences. Journal of Economic Literature. https://doi.org/10.1257/jel.38.1.77

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