Using the MIMIC method, this paper is a first attempt to estimate the size of the shadow economy of 158 countries over … proxy for the size of the economy. Results suggest that the average size of the shadow economy of these 158 countries over …

corruption. On the one hand, if we assume that the goal of criminals involved in corruption is to minimize the probability of … being detected, then corruption represents a demand for money laundering (trigger effect), while money laundering can serve … as an effective way to clean the revenue from corruption for re-investment (multiplier effect). On the other hand …

This paper analyzes the influence of the shadow economy on corruption and vice versa. We hypothesize that corruption … that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. We … also find that stricter regulations increase both corruption and the shadow economy. …

findings, a growing shadow economy has a negative effect on official GDP growth, and a positive impact of corruption on the … criticized, estimates of the size of the shadow economy in 76 developing, transition and OECD-countries are presented. The … average size of a shadow economy varies from 12 percent of GDP for OECD, to 23 percent for transition and to 39 percent for …

Understanding corruption is at the heart of treating the dysfunctionality of many countries’ public sectors. Yet, most … corruption research suffers from one common problem: There is no “objective” measure of public-sector corruption for a cross …-section of countries. Most studies on the determinants or the effects of corruption rely on indicators of corruption perception …