The paper investigates the relationship between the underground economy and financial deepening. Entrepreneurs can only access external finance by disclosing credible information in formal documentation. This may be impossible for many informal producers, who lack proper accounting records....

Since Paul David published his economic histories of path dependent innovation the subject has exerted fascination upon scholars of innovation, technological change and, latterly, regional scientists and economic geographers. This paper speaks to the third and fourth of these communities in the...

The paper investigates the relationship between underground activities and financial deepening. The access to external finance requires entrepreneurs to disclose credible information through formal documentation. This requirement may be impossible to oblige to for many informal producers who...

The paper investigates the relationship between underground activities and financial deepening. We find a strong negative impact of the share of irregular employment on outstanding credit to the private sector. A shift of 1 per cent of employees from regular activities to irregular ones...