The Effect of Corruption on Shadow Economy: An Empirical Analysis Based on Panel Data
Quite often shadow economy (SE) and corruption are seen as "twins", which need each other or fight against each other and theoretically can be either complements or substitutes. Therefore, the relationship between SE and corruption has been a controversial and polemical issue and in the sp...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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University of Sistan and Baluchestan
2015-12-01
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| Series: | International Journal of Business and Development Studies |
| Subjects: | |
| Online Access: | https://ijbds.usb.ac.ir/article_2202_dbf51b5d28565ef0bdddc180217eb690.pdf |
| _version_ | 1797803362906800128 |
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| author | Mohammad Reza Shahab Jamshid Pajooyan Farhad Ghaffari |
| author_facet | Mohammad Reza Shahab Jamshid Pajooyan Farhad Ghaffari |
| author_sort | Mohammad Reza Shahab |
| collection | DOAJ |
| description | Quite often shadow economy (SE) and corruption are seen as "twins", which need each other or fight against each other and theoretically can be either complements or substitutes. Therefore, the relationship between SE and corruption has been a controversial and polemical issue and in the spotlight of a remarkable collection of economists and social researchers.
The main objective of this study can be served as an investigation and identification of the effect of corruption on SE and its dependence on the level of development. To test our two hypothesis , the econometric panel-data approach is employed for the period of 1999 to 2007 in two blocks of 25 countries containing high-developed and developing countries (including I.R.IRAN) under deferent indexes for corruption in the context of Static and Dynamic panel regression models(by using of 2SLS and GMM methods of estimation).
The results of estimations specially based on dynamic panel models indicate that our two hypotheses cannot be rejected and corruption has a significant effect on SE depending on the level of development. Despite of these findings, our results show that there is no robust relationship between corruption and the size of the SE in terms of the sign and the nature of these effects. In other words, the relationship will vary according to different corruption indexes and estimation methods. Other findings have been described in the terminal sector of paper. |
| first_indexed | 2024-03-13T05:19:42Z |
| format | Article |
| id | doaj.art-ea3aba1416ae4a318061b34478beb1ef |
| institution | Directory Open Access Journal |
| issn | 2538-3302 2538-3310 |
| language | English |
| last_indexed | 2024-03-13T05:19:42Z |
| publishDate | 2015-12-01 |
| publisher | University of Sistan and Baluchestan |
| record_format | Article |
| series | International Journal of Business and Development Studies |
| spelling | doaj.art-ea3aba1416ae4a318061b34478beb1ef2023-06-15T16:55:20ZengUniversity of Sistan and BaluchestanInternational Journal of Business and Development Studies2538-33022538-33102015-12-01718510010.22111/ijbds.2015.22022202The Effect of Corruption on Shadow Economy: An Empirical Analysis Based on Panel DataMohammad Reza ShahabJamshid PajooyanFarhad GhaffariQuite often shadow economy (SE) and corruption are seen as "twins", which need each other or fight against each other and theoretically can be either complements or substitutes. Therefore, the relationship between SE and corruption has been a controversial and polemical issue and in the spotlight of a remarkable collection of economists and social researchers. The main objective of this study can be served as an investigation and identification of the effect of corruption on SE and its dependence on the level of development. To test our two hypothesis , the econometric panel-data approach is employed for the period of 1999 to 2007 in two blocks of 25 countries containing high-developed and developing countries (including I.R.IRAN) under deferent indexes for corruption in the context of Static and Dynamic panel regression models(by using of 2SLS and GMM methods of estimation). The results of estimations specially based on dynamic panel models indicate that our two hypotheses cannot be rejected and corruption has a significant effect on SE depending on the level of development. Despite of these findings, our results show that there is no robust relationship between corruption and the size of the SE in terms of the sign and the nature of these effects. In other words, the relationship will vary according to different corruption indexes and estimation methods. Other findings have been described in the terminal sector of paper.https://ijbds.usb.ac.ir/article_2202_dbf51b5d28565ef0bdddc180217eb690.pdfshadow economycorruptionstatic panel regression modelsdynamic panel regression models |
| spellingShingle | Mohammad Reza Shahab Jamshid Pajooyan Farhad Ghaffari The Effect of Corruption on Shadow Economy: An Empirical Analysis Based on Panel Data International Journal of Business and Development Studies shadow economy corruption static panel regression models dynamic panel regression models |
| title | The Effect of Corruption on Shadow Economy: An Empirical Analysis Based on Panel Data |
| title_full | The Effect of Corruption on Shadow Economy: An Empirical Analysis Based on Panel Data |
| title_fullStr | The Effect of Corruption on Shadow Economy: An Empirical Analysis Based on Panel Data |
| title_full_unstemmed | The Effect of Corruption on Shadow Economy: An Empirical Analysis Based on Panel Data |
| title_short | The Effect of Corruption on Shadow Economy: An Empirical Analysis Based on Panel Data |
| title_sort | effect of corruption on shadow economy an empirical analysis based on panel data |
| topic | shadow economy corruption static panel regression models dynamic panel regression models |
| url | https://ijbds.usb.ac.ir/article_2202_dbf51b5d28565ef0bdddc180217eb690.pdf |
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