Estimating the size of the underground economy in the UAE: Evidence from Gregory-Hansen cointegration based currency demand approach
The paper estimates the size of the underground economy and tax evasion in the UAE over the period of 1991:1-2010:4. The study based on currency demand approach model as a proxy to measure the underground economy.The results indicate that the size of the underground economy in the UAE grew signific...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Society of Interdisciplinary Business Research
2015
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/15498/1/riber_b15-187_183-206.pdf |
| Summary: | The paper estimates the size of the underground economy and tax evasion in the UAE over the period of 1991:1-2010:4. The study based on currency demand approach model as a proxy to measure the underground economy.The results indicate that the size of the
underground economy in the UAE grew significantly on average of 10.34% of the GDP over the study period. The rate of tax evasion on the non-oil tax revenues reached, on average, 10.34% over the study period. Nevertheless, the rate of tax evasion to the GDP
remained, on average, at its lowest level at 0.63%. |
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