Determinants of the Shadow Economy in the Czech Regions: A Region-Level Study

Buček, Jan

doi:10.1515/revecp-2017-0016

Cited by 10 publications

(9 citation statements)

References 21 publications

(22 reference statements)

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“…In this context, the researchers have concentrated on the factors behind cross-country differences in the size of the shadow economy considering its unfavorable social, institutional, and economic implications. The relevant literature has elicited that tax and social security burden, regulations, corruption, institutional and legal quality, GDP per capita, inflation, unemployment, and financial sector development are the major factors contributing to the survival of the shadow economy (Ruge, 2010;Bose et al, 2012;Mara & Sabău-Popa, 2013;Remeikiene et al, 2014;Buček, 2017). However, relatively fewer researchers have explored the influence of economic freedom and globalization, two prominent properties of the global economy during the past four decades.…”

Section: Introductionmentioning

confidence: 99%

Economic Freedom, Globalization, and the Shadow Economy in the European Union Transition Economies: a Panel Cointegration Analysis

Bayar

Öztürk

2019

OMEE

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The presence of the shadow economy differs considerably among the countries. Therefore, determination of factors behind the differences in the size of cross-country shadow economy becomes more of an issue for designing and implementing the right policies to combat the shadow economy. This study investigates the influence of economic freedom and globalization on the size of the shadow economy in the European Union transition economies employing panel data analysis for the period of 2000–2015. The empirical analysis indicates that economic freedom reduces the size of the shadow economy in the long term in the overall panel, but globalization also has a relatively smaller detractive effsect on the shadow economy in some countries.

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Section: Introductionmentioning

confidence: 99%

Economic Freedom, Globalization, and the Shadow Economy in the European Union Transition Economies: a Panel Cointegration Analysis

Bayar

Öztürk

2019

OMEE

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“…Population / Population density. Densely populated areas tend to have lower levels of the shadow economy (Buček, 2017).…”

Section: Methodsmentioning

confidence: 99%

“…Previous findings concerning the main determinants of the shadow economy in regions are reviewed in Table 1. As it can be seen in Table 1, the determinants of the shadow economy may vary from region to region, although some general tendencies can be envisaged: many authors highlight the significance of taxation (Bilonizhko, 2006;Tafenau et al, 2010;Buehn, 2012;Polovyan, 2015;Gonzalez-Fernandez & Gonzalez-Velasco, 2015;Gasiūnas, 2018;Remeikiene et al, 2018;Davydova et al, 2020), standard of living (Kireenko et al, 2017;Remeikiene et al, 2018), labour market (Bilonizhko, 2006;Tafenau et al, 2010;Buehn, 2012;Vorobyev, 2015;Buček, 2017;Prytula et al, 2019), institutional factors (Polovyan, 2015) and corruption (Vorobyev, 2015;Borlea et al, 2017;Gillanders & Parviainen, 2018). Nevertheless, the results of some studies are contradictory, for instance, Buček's (2017) study found no evidence to prove the importance of particular types of taxes (e.g.…”

Section: Regional Shadow Economy and Its Determinants: Theoretical Backgroundmentioning

confidence: 99%

“…Among all other factors, Buček (2017) observes that the labour market and the number of people with at least one distraint are statistically significant determinants of the shadow economy, while Vorobyev (2015) emphasizes the high positive correlation between the size of the shadow economy and dependency of regional budget on Federal transfers. Davydova et al (2020) focus on insufficiency of regulation and a lack of governmental intervention and state that shadow activities in Russian regions are often hidden by authorities to gain financial benefits.…”

Section: Regional Shadow Economy and Its Determinants: Theoretical Backgroundmentioning

confidence: 99%

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Evaluation of the Level of Shadow Economy in Lithuanian Regions

Remeikienė

Gasparėnienė

Yorulmaz

et al. 2021

Journal of Business Economics and Management

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The article addresses a topical issue which is extremely relevant in crisis periods – evaluation of the level of the shadow economy in all Lithuanian regions. By applying the MIMIC modelling, three equations were developed for three different periods: economic upturn, economic downturn (crisis) and economic recovery. The number of immigrants, employment rate and population’s density were identified as the major shadow economy determinants in Lithuanian regions. The determinants identified are unique in the case of Lithuania because they reveal that the labour market (employment rate, the number of immigrants) and population’s density are the key factors that show how municipalities address the issues of the shadow economy. 10 municipalities with respectively high or low levels of the shadow economy were ranked for each period under consideration. The maps developed for different periods illustrate the general trends of the evolution of the shadow economy. This is the first study that estimates the size of the shadow economy in 60 municipalities (a small regional division) with different economic periods taken into account. Scientific novelty manifests through consideration of the regional shadow economy and proving significance of the labour market and immigration in reducing regional disparities.

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“…Analysis of research and statement of the problem. Theoretical considerations and empirical researches into the size and development of the shadow economy are presented in the studies of such authors as F. Schneider [1, 2, 7, 10], A. Buehn [1], M. Hassan [2], J. Buček [3], Yu. Kharazishvili [4][5]; T. Putnins, A. Sauka [6]; R. Goel, J. Saunoris [7]; T. Tiner [8], etc.…”

Section: оцінка рівня I природа тіньової економікиmentioning

confidence: 99%

The Magnitude and Nature of the Shadow Economy in Ukrainian Border Regions

et al. 2021

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The peculiarities of the formation and functioning of the shadow sector of economy of the border regions of Ukraine have been considered. It has been substantiated the importance of studying the nature of the emergence of the shadow economy and finding the effective tools for leveling the preconditions for its development.The main regularities and indicators of the emergence and growth of the shadow economy have been outlined. Among them there are the levels of tax burden and social protection, regulatory measures, the quality of social services, the number of self-employed, etc. It is substantiated that the important direction of reducing the shadowing of economic processes is to stimulate the socio-economic development of territories. Positive tendencies of economic development, availability of sufficient opportunities for employment and obtaining decent remuneration for their work, etc., suspend the processes of shadowing in the economy of any country and its regions.The level of the shadow economy has been estimated based on direct and indirect approaches. It has been found that given the importance of retail trade in the economy of the border regions (borderline location, active participation of local residents in the local border traffic, more significant share of services, etc.) and relatively lower levels of socio-economic development, the share of unaccounted economic activity in the official economy of the territories is higher compared to its average in the country.The results of an expert survey of representatives of local authorities on the issues of socio-economic development of the border areas under the terms of the EU-Ukraine Association Agreement have been presented. In particular, the main reasons for the shadowing of the economy, types of economic activity in which the share of economic activity, which is in the "shadow", is the highest, etc. have been outlined.It has been revealed that the illegalization of economic activity and population’s income in the medium- and long-term time period creates preconditions for the outflow of production factors (including the workforce) abroad and reduces investment attractiveness of Ukrainian border territories. In addition, the negative impact of border trade is strengthened by forming of substantial dependence on import of certain types of goods, discouraging the development of domestic production; by avoiding the payment of taxes and therefore — the shortfall in revenues to local budgets, etc.

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Determinants of the Shadow Economy in the Czech Regions: A Region-Level Study

Cited by 10 publications

References 21 publications

Economic Freedom, Globalization, and the Shadow Economy in the European Union Transition Economies: a Panel Cointegration Analysis

Economic Freedom, Globalization, and the Shadow Economy in the European Union Transition Economies: a Panel Cointegration Analysis

Evaluation of the Level of Shadow Economy in Lithuanian Regions

The Magnitude and Nature of the Shadow Economy in Ukrainian Border Regions

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