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. …

We analyze how adding the shadow economy to official output figures affects technical efficiency. We find that this …

economy reduces corruption in high income countries, but increases corruption in low income countries. Finally, the various …Estimations of the size and development of the shadow economy for 145 countries, including developing, transition and … highly developed OECD economies over the period 1999 to 2003 are presented. The average size of the shadow economy (as a …