An Empirical Estimation of the Underground Economy in Ghana

Asiedu, Edward; Stengos, Thanasis

doi:10.1155/2014/891237

Cited by 16 publications

(8 citation statements)

References 40 publications

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“…This method has an advantage in measuring the shadow economy from multiple causes, for example, tax morality, tax burden, and self-employment. We found a rich literature which is based on this method to measure the shadow economy, for instance, Wang et al ( 2006 ), Asiedu and Stengos ( 2014 ), Kaghazian et al ( 2015 ), Schneider and Buehn ( 2016 ), and Franić ( 2019 ).…”

Section: Introductionmentioning

confidence: 99%

RETRACTED ARTICLE: The shadow economy in South Asia: dynamic effects on clean energy consumption and environmental pollution

Sohail

Ullah

Majeed

et al. 2021

Environ Sci Pollut Res

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This study explores the symmetric and asymmetric effects of the shadow economy on clean energy and air pollution of South Asian countries over the period 1991–2019. The short-run ARDL findings for the clean energy model suggest that shadow economy increases clean energy consumption in Pakistan and Sri Lanka, whereas this effect is negative for India and insignificant for other countries. The long-run results indicate the adverse impact only for India and the effects of tax revenue on clean energy are positively significant in Sri Lanka while negatively signiicant in Nepal and Bangladesh. Institutional quality significantly increases clean energy in Pakistan, India, and Nepal. However, in the case of Pakistan and Nepal, institutional quality deteriorated the environmental quality. The results for the pollution model confer that shadow economy increases emissions in Pakistan, decreases in Bangladesh and Nepal, and has no effect in India and Sri Lanka. The nonlinear ARDL results reveal that the positive components of the shadow economy significantly increase clean energy consumption only in Pakistan; however, the negative components of the shadow economy are negatively significant in all countries except Sri Lanka and Nepal. However, the negative component of the informal sector of the economy reduces CO2 emissions in India and increases CO2 emissions in Bangladesh and Nepal. The results offer important policy implications for achieving clean energy and better environmental quality in South Asian countries.

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Section: Introductionmentioning

confidence: 99%

RETRACTED ARTICLE: The shadow economy in South Asia: dynamic effects on clean energy consumption and environmental pollution

Sohail

Ullah

Majeed

et al. 2021

Environ Sci Pollut Res

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show abstract

“…The CDA has also been used in calculating the underground economy and tax evasion in some developing and emerging economies. For example, Saunders and Loots (2005) for South Africa; Koyame (1996) for eight sub-Saharan African countries; Ariyo and Bekoe (2012) for Nigeria; Bekoe (2012) for seven selected African countries; Asante (2012), Annan et al (2014) and Asiedu and Stengos (2014) for Ghana. These recent applications of the currency demand method for developing and emerging economies are significant in offering new understandings into the size and causes of tax evasion in these tax jurisdictions.…”

Section: Literature Reviewmentioning

confidence: 99%

An estimation of the underground economy and tax evasion

Amoh

Adafula

2019

JMLC

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PurposeThis paper aims to use an econometric model to estimate tax evasion from the size of the underground economy and examined the factors that trigger it.Design/methodology/approachThe study used time series data sourced from world development indicators and Bank of Ghana covering the period 1990-2015 to estimate tax evasion from the underground economy using an autoregressive distributed lag model drawing on the currency demand approach.FindingsThe results confirmed the existence of a large underground economy and a high incidence of tax evasion in Ghana. The Ghanaian situation has been aggravated by an underground economy-triggering factor of mobile money activities, which increased by 83.1 per cent in 2015. Tax evasion averaged 20.78 per cent of GDP over the period. The study, thus, concludes that the increased number of mobile money activities, high tax burden and unemployment contribute to the worsening of the tax evasion problem in Ghana.Originality/valueThe study is one of the premier attempts to introduce electricity power consumption variables in the currency demand model to estimate tax evasion from the size of the underground economy. The authors hypothesize that the emergence of mobile money activities in its current form triggers underground and tax-evading activities. The study, thus, calls for the formalization and regulation of the operations of mobile money activities in emerging economies as a way of managing the underground economy, which incubates tax evasion.

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“…The positive and negative effects of the underground economy on the macroeconomic policy variables and the interventions of politicians in influencing the economic policy decisions are important for understanding this phenomenon (Trebicka, 2014). The magnitude of the activities of the underground economy (legal and illegal) differs from country to country (Asiedu and Stengos, 2014;Putnin š and Sauka, 2011).…”

Section: Introductionmentioning

confidence: 99%

Estimating the underground economy, illegal money and tax evasion in Qatar

Gamal

Dahalan

Viswanathan

2019

JFC

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Purpose Up to now a country-specific study on Qatar with respect to underground economy, illegal money and tax evasion has not been undertaken. This paper aims to contribute by separately estimating the magnitude of the underground economy in Qatar from 1980 to 2010 using adjusted currency demand function. Design/methodology/approach The study uses the Zivot–Andrews unit root test for the stationarity analysis and applies the Gregory and Hansen long run cointegrating technique for estimating the underground economy based on the latest form of the currency demand function model. While the general to specific technique is used to estimate the short run error correction model. Findings The results show that the average size of the underground economy in Qatar is about 17.03 per cent of the official gross domestic products (GDPs). The average level of tax evasion as a per cent of the total non-oil tax revenues is estimated at around 16.50 per cent and is about 2.12 per cent of the official GDP. The average level of illegal money to the total money from banking sector is estimated at 26.70 per cent. Originality/value This study is the first to separately estimate the extent of the underground economy, illegal currency and tax evasion in Qatar. It overcomes the methodological errors and spurious estimation problems encountered in the previous studies that included Qatar with other countries based on cross-country data without taking into consideration the economic differences between countries. The authors believe that the findings may help the government of Qatar to re-formulate its economic policies, thus, enabling it to curb the growing underground economic activities.

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An Empirical Estimation of the Underground Economy in Ghana

Cited by 16 publications

References 40 publications

RETRACTED ARTICLE: The shadow economy in South Asia: dynamic effects on clean energy consumption and environmental pollution

RETRACTED ARTICLE: The shadow economy in South Asia: dynamic effects on clean energy consumption and environmental pollution

An estimation of the underground economy and tax evasion

Estimating the underground economy, illegal money and tax evasion in Qatar

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