The Influence of the Shadow Economy and Corruption on Public Debt in European Union Countries pre and post Covid-19
This study aims to analyze the influence of the shadow economy and corruption on public debt in EU countries pre- and post-COVID-19, during 2003-2021, focusing on the challenges arising from recovery efforts after the COVID-19 pandemic. Using the GMM model, the results indicate that the informal...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Ovidius University Press
2025-02-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | https://stec.univ-ovidius.ro/html/anale/RO/2024i2/Section%203/9.pdf |
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| Summary: | This study aims to analyze the influence of the shadow economy and corruption on public debt
in EU countries pre- and post-COVID-19, during 2003-2021, focusing on the challenges arising
from recovery efforts after the COVID-19 pandemic. Using the GMM model, the results indicate
that the informal economy has a negative impact on public debt in most models, while corruption
increases the accumulation of debt. GDP per capita also negatively impacts debt, while
unemployment rates are positively associated with an increase in debt due to social expenditures.
Inflation and investment negatively impact debt, while population growth and trade exhibit
complex effects. The study recommends stimulating the transition to the formal economy, improving
transparency and combating corruption, enhancing economic growth, controlling inflation,
supporting public investment, and promoting international trade to address public debt challenges. |
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| ISSN: | 2393-3127 |