Koffi, Siméon (2022): ANALYSE DE L'ECONOMIE INFORMELLE EN COTE D'IVOIRE : DETERMINANTS ET TAILLE.
Preview |
PDF
MPRA_paper_114472.pdf Download (356kB) | Preview |
Abstract
The shadow economy exists in all countries (developed and developing). This sector, which in many countries escapes any measure, causes distortions in the formal economy. It is to reduce its effect on the economy that this study was initiated to identify its determinants and its size. For the econometric analysis the MIMIC approach was preferred. The results of the study show that of the four causal variables identified (labor force, growth rate of the economy, financial development, and tax burden) only two have significant effects on the size of the informal sector: financial development and tax burden. The latter two variables have positive multiplier effects on the informal economy: 1% increase in one of these determinants could increase the size of the informal economy by almost 2%. Over the study period, 2000-2020, the size of the informal economy (% of GDP) in Côte d'Ivoire is in the range [41; 47].
Item Type: | MPRA Paper |
---|---|
Original Title: | ANALYSE DE L'ECONOMIE INFORMELLE EN COTE D'IVOIRE : DETERMINANTS ET TAILLE |
English Title: | ANALYSIS OF THE SHADOW ECONOMY IN COTE D'IVOIRE: DETERMINANTS AND SIZE |
Language: | French |
Keywords: | Shadow economy, MIMIC, causal variables |
Subjects: | A - General Economics and Teaching > A1 - General Economics > A10 - General C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General D - Microeconomics > D0 - General |
Item ID: | 114472 |
Depositing User: | Mr Siméon Koffi |
Date Deposited: | 07 Sep 2022 13:19 |
Last Modified: | 07 Sep 2022 13:19 |
References: | Bajada, C., and Schneider, F. (2005). The shadow economy of the ASIA PACIFIC, Pacific Economic Review, 10, 3, 379 – 401. Bose, N., Capasso, S., and Wurm, M.A. (2012). The impact of banking development on the size of shadow economies. J. Econ. Stud. 39, 620–638. Breusch, T. (2005). Estimating the underground economy using MIMIC models. Working Paper, National University of Australia, Canberra, Australia. Buehn, A., and Schneider, F. (2008). MIMIC Models, Cointegration and Error Correction: An Application to the French Shadow Economy, IZA Discussion Paper No. 3306. Capasso, S., and Jappelli, T. (2013). Financial development and the underground economy. J. Dev. Econ. 101, 167–178. Dabla-Norris, E., Gradstein, M., and Inchauste, G. (2008). What causes firms to hide output? The determinants of informality. J. Dev. Econ. 85, 1–27. Cebula, R. J. (1997). An Empirical Analysis of the Impact of Government Tax and Auditing Policies on the Size of the Underground Economy, American Journal of Economics and Sociology, 56, 2, 73– 185. Dell’Anno, R. (2003). Estimating the Shadow Economy in Italy: a Structural Equation Approach, University Of Aarhus Denmark, Department Of Economics, Working Paper No. 2003-07. Dell’Anno, R. and Schneider, F. (2006). Estimating the underground economy by using MIMIC Models: A response to T. Breusch´s critique , Working Paper, 0607, Department of Economics, Johannes Kepler University of Linz, Austria. FMI (2022). Qu’est-ce que l’économie informelle? ABC de l’économie. https://www.imf.org/external/pubs/ft/fandd/fre/2020/12/pdf/what-is-the-informal-economy-basics.pdf Goldberger, A. S. (1972). Structural Equation Methods in the Social Sciences. North-Holland: Amsterdam. Hassan, M., and Schneider, F. (2016). Size and Development of the Shadow Economies of 157 Countries Worldwide: Updated and New Measures from 1999 to 2013, IZA DP No. 10281. Helberger, C., and Helmut, K. (1988). How Big is the Shadow Economy? A Re-Analysis of the Unobserved-Variable Approach of B.S. Frey and H.Weck-Hannemann. European Economic Review 32, 965-976. Hill, R. (2002). The Underground Economy in Canada: Boom or Bust? Canadian Tax Journal 50 (5), 1641-1654. Hu, L.T., Bentler, P.M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternative. Structural Equation Modeling; 6:1–55. Schneider, F., and Klinglmair, R. (2004). Shadow Economies around the World: What Do We Know? IZA DP No. 1043, pp.16-17. Smith, R.S. (2002). The Underground Economy: Guidance for Policy Makers? Canadian Tax Journal, 50 (5), 1655-1661. Straub, S. (2005). Informal sector: the credit market channel. J. Dev. Econ. 78, 299–321. Tanzi, V. (1983), The underground economy in the United States: annual estimates, 1930-1980. IMF Staff Papers, 30, 2, 283-305. Tanzi, V. (1999). Uses and Abuses of Estimates of the Underground Economy. The Economic Journal, 109 456, 338-347. Tedds, L. (2005). The Underground Economy in Canada, MPRA Paper No. 4229, posted 24. July 2007. Thomas, J. (1992). Informal economic activity. Handbooks in Economics, Harvester Wheatsheaf, London. Weck-Hannemann, H., and Frey, B. S. (1984). The Hidden Economy as an ‘Unobservable’ Variable. European Economic Review 26, 33-53. Zellner, A. (1970). Estimation of Regression Relationships Containing Unobservable Variables. International Economic Review 11, 441-454 |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/114472 |