The Underground Economy in the Late 1990s: Evading Taxes, or Evading Competition?

Liliane Giardino-Karlinger

Veröffentlichungen: Working Paper

Abstract

Underground economic activity has increased substantially during the late 1990s, both in the industrialized and the developing world. I argue that it was the sharp increase in market competition worldwide which induced firms to move to the underground economy. Empirical evidence from a panel covering 42 countries from 1995 to 2000 shows that increased competition is indeed correlated with an expansion of the underground economy. The effect is weaker in high-income, high-tax, low-corruption countries that provide public services which make it worthwhile for firms to operate in the official economy despite growing competitive pressure.
OriginalspracheEnglisch
HerausgeberUniversität Wien
PublikationsstatusVeröffentlicht - 2008

Publikationsreihe

ReiheVienna Economics Papers

ÖFOS 2012

  • 502053 Volkswirtschaftslehre

Fingerprint

Untersuchen Sie die Forschungsthemen von „The Underground Economy in the Late 1990s: Evading Taxes, or Evading Competition?“. Zusammen bilden sie einen einzigartigen Fingerprint.

Zitationsweisen