Title

Does globalisation affect the shadow economy?

Document Type

Article

Keywords

globalisation; panel data; shadow economy

Identifier Data

https://doi.org/10.1111/twec.12549

Publisher

Wiley Online Library

Publication Source

The World Economy

Abstract

We investigate the impact of globalisation on the shadow economy using panel data for 119 countries. Our evidence suggests that globalisation matters in mitigating shadow development. More specifically, we find that political globalisation reduces the shadow economy, whereas economic and social globalisations have limited statistical support after controlling for important factors that affect the size of the shadow economy. Overall, these results are robust after accounting for an alternative measure of the shadow economy, outliers, endogeneity and alternative model specifications.

This document is currently not available here.

Share

COinS