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. …

The relationship between corruption and the shadow economy is not clear. Theoretically, they either substitute or … two latent variables - extracts information on various dimensions of corruption and the shadow economy to contribute to … corruption. The results show that the shadow economy influences corruption more than corruption influences the shadow economy. …

This paper analyses how tax morale and countries' institutional quality affect the shadow economy, controlling in a … factors to understand the level and changes of shadow economy. Relatively new available data sources offer the unique … that a higher tax morale and a higher institutional quality lead to a smaller shadow economy. …

This paper analyses how governance or institutional quality and tax morale affect the shadow economy, using an … factors to understand the level and changes of shadow economy. However, the limited number of investigations use cross … support that its increase leads to a smaller shadow economy. Moreover, an increase in tax morale reduces the size of the …

negative impact on official GDP growth, however, a positive impact of corruption on the size of the shadow economy can be found …, i.e. the bigger the corruption, the larger is the shadow economy. … shadow economy (in % of GDP) over 1989-93 in developing countries is 39.2%, in transition countries 23.2% and in OECD …

, however, is that there seem to be certain threshold levels of financial and institutional development that an economy needs to …