View More View Less
  • 1 Samara State University of Economics, Russia
  • 2 Samara State University of Economics, Russia
  • 3 Samara State University of Economics, Russia
  • 4 Samara State University of Economics, Russia
Restricted access

Purchase article

USD  $25.00

1 year subscription (Individual Only)

USD  $700.00

This article aims to explore the relationship of the shadow economy with the institutional environment and develop practical recommendations for government policies around the world, and particularly in Russia. The urgency of the issue under research is caused by the existing need to study the shadow economy in order to find ways to reduce its scale and level out its negative externalities. Despite the fact that most of the papers focus on tax burden as a fundamental determinant of the shadow economy, the authors of this article believe that institutional tools can expand the boundaries of research on the content of the shadow economy as an economic category. Statistical analysis of 105 countries with different development levels revealed a stronger correlation between the quality of institutions and the size of the shadow economy than the one between total tax burden and the size of the shadow economy. The findings of this article can be useful in developing state strategies for combating the shadow economy and carrying out economic policies of the state as a whole.

  • Auzan, A. (2017): Institutional Economics: A New Institutional Economic Theory. Moscow: INFRA- M Publication (In Russian).

  • Cagan, P. (1958): The Demand for Currency Relative to the Total Money Supply. Journal of Political Economy, 66(4): 303328.

  • Dreher, A.Kotsogiannis, C.McCorriston, S. (2009): How do Institutions Affect Corruption and the Shadow Economy? International Tax and Public Finance, 16(6): 773796.

    • Search Google Scholar
    • Export Citation
  • De Soto, H. (2000): The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. London: Bantam Press.

  • Elgin, C.Oztunali, O. (2014): Institutions, Informal Economy, and Economic Development. Emerging Markets Finance and Trade, 50(4): 145162.

    • Search Google Scholar
    • Export Citation
  • Enste, D. H. (2002): The Shadow Economy and Institutional Change in EU Accession Countries: A Two Pillar Strategy for the Challenges Ahead.

    • Search Google Scholar
    • Export Citation
  • Feige, E. L. (1979): How Big is the Irregular Economy? Challenge, 22(5): 513.

  • Feige, E. L. (1980): A New Perspective on Macroeconomic Phenomena. The Theory and Measurement of the Unobserved Sector of the United States: Causes, Consequences and Implications. Wassenaar: Netherlands Institute for Advanced Studies.

    • Search Google Scholar
    • Export Citation
  • Friedman, E.Johnson, S.Kaufmann, D.Zoido-Lobaton, P. (2000): Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69 Countries. Journal of Public Economics, 76(3): 459493.

    • Search Google Scholar
    • Export Citation
  • Gutmann, P. (1977): The Subterranean Economy. Financial Analysts Journal, 33(6): 2634.

  • Giles, D. E. A. (1999): Measuring the Hidden Economy: Implications for Econometric Modelling. Economic Journal, 109(3): 370380.

  • Grossman, G. (1977): The Second Economy of the USSR. Problems of Communism, 26(5): 2540.

  • Hart, K. (1973): Informal Income Opportunities and Urban Employment in Ghana. Journal of Modern African Studies, 11 6189.

  • Hassan, M.Schneider, F. (2016): Size and Development of the Shadow Economies of 157 Worldwide Countries: Updated and New Measures from 1999 to 2013. IZA Discussion Paper, No. 10281.

    • Export Citation
  • Hibbs, D. A. Jr.Piculescu, V. (2005): Institutions, Corruption and Tax Evasion in the Unofficial Economy. Göteborg University, Department of Economics.

    • Search Google Scholar
    • Export Citation
  • IMF (2012): World Economic Outlook: Growth Resuming, Dangers Remain. Washington, D.C.

  • IMF (2013): World Economic Outlook: Hopes, Realities, Risks.

  • Washington, D.C. Johnson, S.Kaufmann, D.Shleifer, A. (1997): The Unofficial Economy in Transition. Brookings Papers on Economic Activity, 2 159221.

    • Search Google Scholar
    • Export Citation
  • Johnson, S.Kaufmann, D.Zoido-Lobatón, P. (1998): Regulatory Discretion and the Unofficial Economy. American Economic Review, Papers and Proceedings, 88(2): 38792.

    • Search Google Scholar
    • Export Citation
  • Kaldor, N. (1956): Indian Tax Reform: Report of a Survey. Ministry of Finance, Dept. of Economic Affairs.

  • Katsenelinboigen, A. (1977): Coloured Markets in the Soviet Union. Soviet Studies, 29(1): 6285.

  • Kornai, J. (1980): Economics of Shortage. Amsterdam: North-Holland.

  • Lippert, O.Walker, M. (1997): The Underground Economy: Global Evidences of Its Size and Impact. Vancouver, B.C.: Frazer Institute.

    • Search Google Scholar
    • Export Citation
  • Levin, M.Satarov, G. (2000): Corruption and Institutions in Russia. European Journal of Political Economy, 16(1): 113132.

  • Luhmann, N. (1990): Essays on Self-Reference. Columbia University Press.

  • Mazhar, U. (2015): Does Regulatory Discretion Increase the Unofficial Economy? Evidence from Panel data. Acta Oeconomica, 65(1): 129141.

  • Schneiberg, M. (2005): Combining New Institutionalisms: Explaining Institutional Change in American Property Insurance. Sociological Forum, 20(1): 93137.

    • Search Google Scholar
    • Export Citation
  • Schneider, F.Williams, C. (2013): The Shadow Economy. London: The Institute of Economic Affairs.

  • Schneider, F.Raczkowski, K.Mróz, B. (2015): Shadow Economy and Tax Evasion in the EU. Journal of Money Laundering Control, 18(1): 3451.

    • Search Google Scholar
    • Export Citation
  • Schwab, K. (2013): The Global Competitiveness Report 2013–2014. Geneva: Word Economic Forum.

  • Smith, P. (1994): Assessing the Size of the Underground Economy: The Statistics Canada Perspectives. Statistics Canada, No. 28.

  • Thomas, J. J. (1992): Informal Economic Activity (LSE Handbooks in Economics). New Jersey, USA: Prentice-Hall.

The author instruction is available in PDF.
Please, download the file from HERE.

  • Impact Factor (2019): 0.914
  • Scimago Journal Rank (2019): 0.439
  • SJR Hirsch-Index (2019): 12
  • SJR Quartile Score (2019): Q2 Economics and Econometrics
  • Impact Factor (2018): 0.84
  • Scimago Journal Rank (2018): 0.311
  • SJR Hirsch-Index (2018): 11
  • SJR Quartile Score (2018): Q3 Economics and Econometrics

Language: English

Founded in 1966
Publication: One volume of two issues annually
Publication Programme: 2020. Vol. 70.
Indexing and Abstracting Services:

  • EconLit
  • Elsevier GEO Abstracts
  • International Bibliographies IBZ and IBR
  • JEL
  • Referativnyi Zhurnal
  • RePEc
  • Social Science Citation Index


Subscribers can access the electronic version of every printed article.

Senior editors

Editor(s)-in-Chief: Prof. Dr. Mihályi, Péter

Editor(s): Ványai, Judit

Editorial Board

      Török, Ádám (Chairman)
      Berlinger, Edina
      Halmai, Péter
      Kézdi, Gábor
      Kónya, István
      Köllő, János
      Magas, István

Advisory Board

      Ǻslund, Anders
      Kolodko, Grzegorz
      Mau, Vladimir
      Messerlin, Patrick A
      Nuti, Mario Domenico
      Wagener, Hans-Jürgen

Corvinus University of Budapest
Department of Macroeconomics
Fővám tér 8, Budapest, H-1093, Hungary