Income Inequality, Corruption, and the Non-Observed Economy: A Global Perspective

Ahmed, Ehsan; Rosser, J. Barkley; Rosser, Marina V.

doi:10.1007/978-88-470-0534-1_12

Cited by 26 publications

(15 citation statements)

References 26 publications

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“…Friedman et al, (2000) argued that this negative relationship resulted according to an analysis tested the relation between the two variables over a period of time in different countries. Ahmed et al (2007) confirmed the strong relation among income inequality and the shadow economic activities worldwide. They found no connection among tax rates and the shadow economy, but found a robust relation among tax rates and income equality.…”

Section: Literature Reviewmentioning

confidence: 68%

The Shadow Economy in Palestine: Size and Causes

Sabra¹,

Eltalla²,

Alfar³

2015

IJEF

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The study aims to measure the size of the shadow economy in Palestine during the period 1995-2012 by using multiple regression method. In addition, the study aims to assess the main reasons that affect the size of the shadow economy. By using latest data and multiple regression method, this paper finds that, the size of shadow economy is between (57%-88%) of GDP. The size of shadow economy in Palestine is very high due to the political situation, which are a result of the Israeli occupation since 1967 and the blockade of Gaza strip. The main factors that affect the size of the shadow economy in Palestine is the ownership of businesses, an increase of ownership by 1% to the total employment leads to an increase in the shadow economy size by 0.57%. Another important reason that affects the size of the shadow economy is the tax burden. According to our results, an increase of tax burden by 1% leads to an increase in the shadow economy size by 0.54%. Other factors that affect the size of shadow economy in Palestine like the unemployment rate; growth rate and intensity of regulations are included in our study and have a significant effect. The shadow economy in Palestine plays a negative role that decreases the tax collections and affects the governmental fiscal policies.

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Section: Literature Reviewmentioning

confidence: 68%

The Shadow Economy in Palestine: Size and Causes

Sabra¹,

Eltalla²,

Alfar³

2015

IJEF

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show abstract

“…Schneider (2007) provides empirical evidence that an increase in the tax burden, social security contributions and labour regulations are major motivators for firms to operate underground. Rosser et al (2003) and Ahmed et al (2007) argue that income inequality causes social alienation and, as a result of low social capital and weak social cohesion, participation in the informal economy increases.…”

Section: Introductionmentioning

confidence: 98%

Business culture and tax evasion: Why corruption and the unofficial economy can persist

Çule

Fulton

2009

Journal of Economic Behavior & Organization

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“…According to Rosser et al (2000), greater income equality might help control the growth of the IS in some transition economies. The evidence that a large IS is associated with higher levels of income inequality is also supported by Ahmed et al (2007) using a global data set. Their results also show a strong positive relationship between income inequality and the size of the IS.…”

Section: Literaturementioning

confidence: 83%

“…The first hypothesis underscores the inherent problems of using estimates of the IS in empirical analysis as highlighted in Ahmed et al (2007). As a result, the differences in the results of the relationship between the IS and income inequality are as a spillover of the ongoing debate on the derivation of the IS estimates themselves.…”

Section: Downloaded By [University Of Lethbridge] At 01:31 12 Octobermentioning

confidence: 97%