چکیده:
In a general classification, the economy of any country is divided into two parts of official and invisible economies. Invisible activities drop outside the scope of the law and official economy and strongly affect socioeconomic development and the formal sector of all countries.These activities which are known under various titles including the shadow economy are influenced by various factors. This paper examined the effects of globalization on the shadow economy. The study was conducted for a selection of developing countries and transition economies during the period from 1999 to 2009 using Differenced Generalized Method of Moments (Difference-GMM) and System Generalized Method of Moments (System-GMM) approaches. Finally, a comparison was made between these two approaches. The results of the study indicated the superiority of System GMM approach in comparison with Differenced GMM. Due to the results of the System GMM as the superior approach, there was an inverse relationship between the shadow economy and globalization. In other words, less economic freedoms and restrictions in various economic areas such as taxation and investments increase the size of the shadow economy. The increase of the shadow economy can be considered as a threat to the national output.In a general classification, the economy of any country is divided into two parts of official and invisible economies. Invisible activities drop outside the scope of the law and official economy and strongly affect socioeconomic development and the formal sector of all countries.These activities which are known under various titles including the shadow economy are influenced by various factors. This paper examined the effects of globalization on the shadow economy. The study was conducted for a selection of developing countries and transition economies during the period from 1999 to 2009 using Differenced Generalized Method of Moments (Difference-GMM) and System Generalized Method of Moments (System-GMM) approaches. Finally, a comparison was made between these two approaches. The results of the study indicated the superiority of System GMM approach in comparison with Differenced GMM. Due to the results of the System GMM as the superior approach, there was an inverse relationship between the shadow economy and globalization. In other words, less economic freedoms and restrictions in various economic areas such as taxation and investments increase the size of the shadow economy. The increase of the shadow economy can be considered as a threat to the national output.
خلاصه ماشینی:
"In the current study the explanatory variables include economic freedom index, Gini index is a representative for income distribution, GDP per capita based on the purchasing power parity (PPP) (base year of 2005), population aged over 65 years and foreign investment.
The symbols of the variables were as follows: : Logarithm of the shadow economy (dependent variable) for country i in year t; : Logarithm of the shadow economy lags for the previous period; : Logarithm of the economic freedom index; Logarithm of the gross domestic product (GDP) : Logarithm of the Gini Index; ge: Logarithm of age for the population aged over 65 years; : Logarithm of the foreign investment; Clearly,various restrictions to economic activities by governments in financial markets, investment and trade, as well as property rights (which are sub-components of Economic Freedom Index), economic freedom decreases and individuals and firms tend to do more shadow activities.
Data Data for the size of the shadow economy for 1999-2007 was gathered from studies conducted by Schneider et al (2010) using MIMIC approach and for the year 2008 from Elgin and Öztunali (2012) using Two- Sector Dynamic General Equilibrium Model as percent of GDP.
This survey was the first study conducted for the investigation of the relationship between globalization and shadow economy for the period of 1999-2009 using Difference GMM and System GMM approaches.
In fact according to the results of this survey the shadow economy expands with the increase of the poverty in the studied countries because the increase of poverty causes more individual to attract illegal activities like the shadow economy to satisfy their socio-economic needs."