Skip to main content

ETHNOS_APP

Home • Search • Journals • List 0

Corruption and shadow economy in transition economies of European Union countries

A panel cointegration and causality analysis

Bibliographic Data

ID15067928
AuthorsY Bayar (0000-0002-6776-6524, Faculty of Economics and Administrative Sciences, Usak University , Usak , Turkey, corresponding author), Hakki Odabas (Faculty of Political Sciences, Ankara Yıldırım Beyazıt University , Ankara , Turkey), Hakkı Odabaş (0000-0001-9145-9391, Ankara Yıldırım Beyazıt University), Mahmut Ünsal Şaşmaz (0000-0001-9485-3933, Faculty of Economics and Administrative Sciences, Usak University , Usak , Turkey), Ömer Faruk Öztürk (0000-0003-0250-5021, Faculty of Economics and Administrative Sciences, Usak University , Usak , Turkey)
Year2018
Volume31
Issue1
Pages1940-1952
Publication date2018-01-01
Open AccessYes
TypeARTICLE
VenueEconomic Research-Ekonomska Istraživanja (JOURNAL)
Journal identifiersISSN: 1331-677X • E-ISSN: 1848-9664
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/1331677x.2018.1498010
OpenAlexW2913499260
LanguageEN
Citations received6
References cited16

Corruption and shadow economy are two critical problems which feed each other and pose an obstacle against the economic development of countries, especially those with weak fundamentals. Central and Eastern European countries have experienced an absolute political and economic transformation after the downfall of the Berlin Wall. This study researches the effect of corruption and rule of law on shadow economy in 11 transition economies of Central and Eastern Europe over the 2003-2015 term with panel cointegration and causality tests considering heterogeneity and cross-sectional dependence. The cointegration coefficients revealed a complementary interplay between size of shadow economy and corruption. Furthermore, the causality analysis indicated that there was a bilateral causality between control of corruption and shadow economy in all the cross-section units. However, there was a two-way causality between rule of law and shadow economy only in Bulgaria, Czech Republic, Poland and Romania. Furthermore, there was one-way causality from rule of law to shadow economy in Croatia, Estonia, Hungary, Slovakia and Slovenia

Cointegration · Econometrics · Economic system · Economics · Economy · European union · International economics · Language change · Macroeconomics · Corruption and Economic Development · Fiscal Policy and Economic Growth · Taxation and Compliance Studies

  • The impact of food insecurity on health outcomes

    Open Access•Sisay Demissew Beyene•BMC Public Health•2023

  • Does government effectiveness moderate public spending on education–shadow economy nexus in Asean countries

    Open Access•Toan Khanh Tran Pham•Annals of Public and Cooperative…•2023

  • Corruption and its Impact on Protest Activities in Post-communist Europe

    Open Access•Milan Školník•European Review•2021

  • Governance spending fixation as a tool for reform to improve institutions

    Open Access•Eimantas Blažys•Economic Research-Ekonomska…•2020

  • It is not OK but it works – unproductive entrepreneurship, the case of Poland

    Open Access•Julita Wasilczuk, Katarzyna Stankiewicz•Economic Research-Ekonomska…•2022

  • Do shadow economy, institutional regulatory framework, government stability, and corruption affect non-performing banking loans in emerging market economies

    Open Access•Aamir Aijaz Syed, Muhammad Abdul Kamal et al.•International Social Science…•2022

  • Corruption Around the World

    Vito Tanzi•Staff Papers•1998

  • A panel bootstrap cointegration test

    Open Access•Joakim Westerlund, David Edgerton et al.•Economics Letters•2007

  • A bias-adjusted LM test of error cross-section independence

    Open Access•M Hashem Pesaran, Aman Ullah et al.•The Econometrics Journal•2008

  • Dodging the grabbing hand

    Open Access•Eric Friedman, Simon Johnson et al.•Journal of Public Economics•2000

  • Exports and growth

    Open Access•László Kónya•Economic Modelling•2006

  • Shadow Economies

    Friedrich Schneider, Dominik H Enste•Journal of Economic Literature•2000

  • The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics

    Trevor Breusch, T S Breusch et al.•The Review of Economic Studies•1980

  • A simple panel unit root test in the presence of cross‐section dependence

    Open Access•M Hashem Pesaran•Journal of Applied Econometrics•2007

  • Analyzing the Determinants of the Shadow Economy With a “Separate Approach”. An Application of the Relationship Between Inequality and the Shadow Economy

    Open Access•Roberto Dell’Anno•World Development•2015

  • Corruption and the shadow economy

    Open Access•Axel Dreher, Friedrich Schneider•Public Choice•2010

Citations per year1
Citation span2020 - 2023 (4)
Highly citedNo

Tools

Open DOISci-HubOpen Access
Ethnos_APP • Open Source Project • MIT License • Frontend v2.0.0 • Privacy and Cookies • API Documentation: api.ethnos.app/docs • API Source Code: GitHub • DOI: 10.5281/zenodo.17049435 • Frontend Source Code: GitHub • DOI: 10.5281/zenodo.17050053 • cruz.rio.br • Expectantes Misericordiae