Unveiling the Factors Behind the Shadow Economy: A Global Investigation Utilizing Panel Data Analysis
The paper addresses the topic of the shadow economy and the socio-economic factors that influence it. By reviewing relevant studies, we will observe that a variety of factors play a role in shaping this economy. Using a dataset comprising 50 countries from around the world, monitored over 13 years,...
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| Format: | Article |
| Language: | English |
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Institutul de Studii Financiare
2024-11-01
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| Series: | Revista de Studii Financiare |
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| Online Access: | https://revista.isfin.ro/wp-content/uploads/2024/11/1.-Achim-M.-et..pdf |
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| author | Mihai-Adrian Achim Codruța Mare |
| author_facet | Mihai-Adrian Achim Codruța Mare |
| author_sort | Mihai-Adrian Achim |
| collection | DOAJ |
| description | The paper addresses the topic of the shadow economy and the socio-economic factors that influence it. By reviewing relevant studies, we will observe that a variety of factors play a role in shaping this economy. Using a dataset comprising 50 countries from around the world, monitored over 13 years, we conducted an analysis to determine which of the discussed factors most significantly impact the level of the shadow economy. The OLS model shows a positive relationship between income inequality, the unemployment rate and the shadow economy and a negative relationship between the World Governance Index, income inequality and the shadow economy. We will find that this model will have autocorrelation problems that might influence the significance of the coefficients. Our main model (the GMM one) addresses autocorrelation and heteroskedasticity but shows some different outcomes. The findings can serve as a valuable resource for other researchers or even governments, helping to identify what changes are needed to reduce the share of the shadow economy. By the end of this research, we will have identified the key areas that need enhancement and growth to effectively address and reduce the shadow economy. |
| format | Article |
| id | doaj-art-ae528021968446c5ad0260f5dc7dc682 |
| institution | Kabale University |
| issn | 2537-3714 2559-1347 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | Institutul de Studii Financiare |
| record_format | Article |
| series | Revista de Studii Financiare |
| spelling | doaj-art-ae528021968446c5ad0260f5dc7dc6822025-08-20T03:28:22ZengInstitutul de Studii FinanciareRevista de Studii Financiare2537-37142559-13472024-11-0191792310.55654/JFS.2024.9.17.01Unveiling the Factors Behind the Shadow Economy: A Global Investigation Utilizing Panel Data AnalysisMihai-Adrian Achim0Codruța Mare1Babeș-Bolyai University, Cluj-Napoca, RomaniaBabeș-Bolyai University, Cluj-Napoca, RomaniaThe paper addresses the topic of the shadow economy and the socio-economic factors that influence it. By reviewing relevant studies, we will observe that a variety of factors play a role in shaping this economy. Using a dataset comprising 50 countries from around the world, monitored over 13 years, we conducted an analysis to determine which of the discussed factors most significantly impact the level of the shadow economy. The OLS model shows a positive relationship between income inequality, the unemployment rate and the shadow economy and a negative relationship between the World Governance Index, income inequality and the shadow economy. We will find that this model will have autocorrelation problems that might influence the significance of the coefficients. Our main model (the GMM one) addresses autocorrelation and heteroskedasticity but shows some different outcomes. The findings can serve as a valuable resource for other researchers or even governments, helping to identify what changes are needed to reduce the share of the shadow economy. By the end of this research, we will have identified the key areas that need enhancement and growth to effectively address and reduce the shadow economy.https://revista.isfin.ro/wp-content/uploads/2024/11/1.-Achim-M.-et..pdfshadow economyincome inequalityeconomic developmentpublic governancegmm |
| spellingShingle | Mihai-Adrian Achim Codruța Mare Unveiling the Factors Behind the Shadow Economy: A Global Investigation Utilizing Panel Data Analysis Revista de Studii Financiare shadow economy income inequality economic development public governance gmm |
| title | Unveiling the Factors Behind the Shadow Economy: A Global Investigation Utilizing Panel Data Analysis |
| title_full | Unveiling the Factors Behind the Shadow Economy: A Global Investigation Utilizing Panel Data Analysis |
| title_fullStr | Unveiling the Factors Behind the Shadow Economy: A Global Investigation Utilizing Panel Data Analysis |
| title_full_unstemmed | Unveiling the Factors Behind the Shadow Economy: A Global Investigation Utilizing Panel Data Analysis |
| title_short | Unveiling the Factors Behind the Shadow Economy: A Global Investigation Utilizing Panel Data Analysis |
| title_sort | unveiling the factors behind the shadow economy a global investigation utilizing panel data analysis |
| topic | shadow economy income inequality economic development public governance gmm |
| url | https://revista.isfin.ro/wp-content/uploads/2024/11/1.-Achim-M.-et..pdf |
| work_keys_str_mv | AT mihaiadrianachim unveilingthefactorsbehindtheshadoweconomyaglobalinvestigationutilizingpaneldataanalysis AT codrutamare unveilingthefactorsbehindtheshadoweconomyaglobalinvestigationutilizingpaneldataanalysis |