Determinants of Shadow Economy in Eastern European Countries
In this article the relationship between shadow economy and its’ determinants has been examined. Ten Eastern countries from European Union were chosen due to specific particularities, which may cause higher shadow economy levels in the investigated countries compared with the EU average. Time span o...
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| Format: | Article |
| Language: | English |
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Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house
2019-03-01
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| Series: | Scientific Annals of Economics and Business |
| Subjects: | |
| Online Access: | http://www.degruyter.com/view/j/saeb.2019.66.issue-1/saeb-2019-0002/saeb-2019-0002.xml?format=INT |
| _version_ | 1818977743497330688 |
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| author | Navickas Mykolas Juščius Vytautas Navickas Valentinas |
| author_facet | Navickas Mykolas Juščius Vytautas Navickas Valentinas |
| author_sort | Navickas Mykolas |
| collection | DOAJ |
| description | In this article the relationship between shadow economy and its’ determinants has been examined. Ten Eastern countries from European Union were chosen due to specific particularities, which may cause higher shadow economy levels in the investigated countries compared with the EU average. Time span of 2003-2016 was selected, as 2017 data has yet to be released at the time of the analysis. Article consists of examination of the current situation and shadow economy trends in Eastern European countries; overview of shadow economy scientific literature followed by hypothesis, which are examined by constructing regression models. Models aim to distinguish the relationship between selected determinants and shadow economy size. Scientific literature analysis revealed that increase of tax burden on labor is seen as a primary reason for the increase of shadow economy, however, such relation has not been identified. Furthermore, results show that unemployment and self-employed people ratio affect shadow economy insignificantly. This suggests that further analysis is needed. Nonetheless, regression model has not rejected the hypotheses of corruption level, income inequality, business freedom and GDP per capita effect on shadow economy. Thus, it can be stated that these variables are determinants of shadow economy in Eastern European countries. |
| first_indexed | 2024-12-20T16:32:36Z |
| format | Article |
| id | doaj.art-b056cfc3b2bc473ca822b1d901acc10d |
| institution | Directory Open Access Journal |
| issn | 2501-3165 |
| language | English |
| last_indexed | 2024-12-20T16:32:36Z |
| publishDate | 2019-03-01 |
| publisher | Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house |
| record_format | Article |
| series | Scientific Annals of Economics and Business |
| spelling | doaj.art-b056cfc3b2bc473ca822b1d901acc10d2022-12-21T19:33:13ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652019-03-0166111410.2478/saeb-2019-0002saeb-2019-0002Determinants of Shadow Economy in Eastern European CountriesNavickas Mykolas0Juščius Vytautas1Navickas Valentinas2Klaipėda University, LithuaniaFaculty of Social Sciences, Klaipėda University, LithuaniaKaunas University of Technology, LithuaniaIn this article the relationship between shadow economy and its’ determinants has been examined. Ten Eastern countries from European Union were chosen due to specific particularities, which may cause higher shadow economy levels in the investigated countries compared with the EU average. Time span of 2003-2016 was selected, as 2017 data has yet to be released at the time of the analysis. Article consists of examination of the current situation and shadow economy trends in Eastern European countries; overview of shadow economy scientific literature followed by hypothesis, which are examined by constructing regression models. Models aim to distinguish the relationship between selected determinants and shadow economy size. Scientific literature analysis revealed that increase of tax burden on labor is seen as a primary reason for the increase of shadow economy, however, such relation has not been identified. Furthermore, results show that unemployment and self-employed people ratio affect shadow economy insignificantly. This suggests that further analysis is needed. Nonetheless, regression model has not rejected the hypotheses of corruption level, income inequality, business freedom and GDP per capita effect on shadow economy. Thus, it can be stated that these variables are determinants of shadow economy in Eastern European countries.http://www.degruyter.com/view/j/saeb.2019.66.issue-1/saeb-2019-0002/saeb-2019-0002.xml?format=INTshadow economyEastern European countriesMIMIC methodologytax burdengovernment regulation |
| spellingShingle | Navickas Mykolas Juščius Vytautas Navickas Valentinas Determinants of Shadow Economy in Eastern European Countries Scientific Annals of Economics and Business shadow economy Eastern European countries MIMIC methodology tax burden government regulation |
| title | Determinants of Shadow Economy in Eastern European Countries |
| title_full | Determinants of Shadow Economy in Eastern European Countries |
| title_fullStr | Determinants of Shadow Economy in Eastern European Countries |
| title_full_unstemmed | Determinants of Shadow Economy in Eastern European Countries |
| title_short | Determinants of Shadow Economy in Eastern European Countries |
| title_sort | determinants of shadow economy in eastern european countries |
| topic | shadow economy Eastern European countries MIMIC methodology tax burden government regulation |
| url | http://www.degruyter.com/view/j/saeb.2019.66.issue-1/saeb-2019-0002/saeb-2019-0002.xml?format=INT |
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