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This paper analyzes the influence of the shadow economy on corruption and vice versa. We hypothesize that corruption and shadow economy are substitutes in high income countries while they are complements in low income countries. The hypotheses are tested for a cross-section of 120 countries and...
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is, in fact, a ten-trillion-dollar industry, making it the second-largest economy in the world, after that of the United … States. Having penetrated this closed world, Robert Neuwirth makes clear that this informal method of transaction dates back … and skepticism toward conventional perceptions--Neuwirth gives us an eye-opening account of a world that is operating all …
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We study how the shadow economy affects pollution and how this effect depends on corruption levels in public administration. Production in the shadow economy allows firms to avoid environmental regulation policies; a large informal sector may be accompanied by higher pollution levels. Our...
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