Download or read book Inclusive Growth Institutions and the Underground Economy written by Mr.Anoop Singh and published by International Monetary Fund. This book was released on 2012-02-01 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: Worldwide protests against the perceived lack of economic opportunity and failure of governance have refocused attention on the need for inclusive growth and strong institutions. In developing countries, large informal economies limit state capacity to deliver governance and strong institutions, which in turn discourages participation in and expansion of the formal economy. This paper analyzes the determinants of the underground economy, with particular emphasis on the role of institutions and the rule of law. We find that when businesses are faced with onerous regulation, inconsistent enforcement and corruption, they have an incentive to hide their activities in the underground economy. Empirical analysis suggests that institutions are a more important determinant of the size of the underground economy than tax rates.
Download or read book The Long Shadow of Informality written by Franziska Ohnsorge and published by World Bank Publications. This book was released on 2022-02-09 with total page 397 pages. Available in PDF, EPUB and Kindle. Book excerpt: A large percentage of workers and firms operate in the informal economy, outside the line of sight of governments in emerging market and developing economies. This may hold back the recovery in these economies from the deep recessions caused by the COVID-19 pandemic--unless governments adopt a broad set of policies to address the challenges of widespread informality. This study is the first comprehensive analysis of the extent of informality and its implications for a durable economic recovery and for long-term development. It finds that pervasive informality is associated with significantly weaker economic outcomes--including lower government resources to combat recessions, lower per capita incomes, greater poverty, less financial development, and weaker investment and productivity.
Download or read book Finance Development March 2012 written by International Monetary Fund. External Relations Dept. and published by International Monetary Fund. This book was released on 2012-03-14 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Young people, hardest hit by the global economic downturn, are speaking out and demanding change. F&D looks at the need to urgently address the challenges facing youth and create opportunities for them. Harvard professor David Bloom lays out the scope of the problem and emphasizes the importance of listening to young people in "Youth in the Balance." "Making the Grade" looks at how to teach today's young people what they need to get jobs. IMF Deputy Managing Director, Nemat Shafik shares her take on the social and economic consequences of youth unemployment in our "Straight Talk" column. "Scarred Generation" looks at the effects the global economic crisis had on young workers in advanced economies, and we hear directly from young people across the globe in "Voices of Youth." Renminbi's rise, financial system regulation, and boosting GDP by empowering women. Also in the magazine, we examine the rise of the Chinese currency, look at the role of the credit rating agencies, discuss how to boost the empowerment of women, and present our primer on macroprudential regulation, seen as increasingly important to financial stability. People in economics - C. Fred Bergsten, American Globalist. Back to basics - The multi-dimensional role of banks in our financial systems.
Download or read book The Global Informal Workforce written by International Monetary Fund and published by International Monetary Fund. This book was released on 2021-07-23 with total page 414 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Global Informal Workforce is a fresh look at the informal economy around the world and its impact on the macroeconomy. The book covers interactions between the informal economy, labor and product markets, gender equality, fiscal institutions and outcomes, social protection, and financial inclusion. Informality is a widespread and persistent phenomenon that affects how fast economies can grow, develop, and provide decent economic opportunities for their populations. The COVID-19 pandemic has helped to uncover the vulnerabilities of the informal workforce.
Download or read book The Shadow Economy written by Friedrich Schneider and published by Cambridge University Press. This book was released on 2013-02-14 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents new data to give an overview of shadow economies from OECD countries and propose solutions to prevent illicit work.
Download or read book Shadow Economies Around the World What Did We Learn Over the Last 20 Years written by Leandro Medina and published by International Monetary Fund. This book was released on 2018-01-25 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt: We undertake an extended discussion of the latest developments about the existing and new estimation methods of the shadow economy. New results on the shadow economy for 158 countries all over the world are presented over 1991 to 2015. Strengths and weaknesses of these methods are assessed and a critical comparison and evaluation of the methods is carried out. The average size of the shadow economy of the 158 countries over 1991 to 2015 is 31.9 percent. The largest ones are Zimbabwe with 60.6 percent, and Bolivia with 62.3 percent of GDP. The lowest ones are Austria with 8.9 percent, and Switzerland with 7.2 percent. The new methods, especially the new macro method, Currency Demand Approach (CDA) and Multiple Indicators Multiple Causes (MIMIC) in a structured hybrid-model based estimation procedure, are promising approaches from an econometric standpoint, alongside some new micro estimates. These estimations come quite close to others used by statistical offices or based on surveys.
Download or read book The Shadow Economy written by Friedrich Schneider and published by Cambridge University Press. This book was released on 2013-02-14 with total page 225 pages. Available in PDF, EPUB and Kindle. Book excerpt: Illicit work, social security fraud, economic crime and other shadow economy activities are fast becoming an international problem. This second edition uses new data to reassess currency demand and the model approach to estimate the size of the shadow economy in 151 developing, transition, and OECD countries. This updated edition argues that during the 2000s the average size of the shadow economy varied from 19 per cent of GDP for OECD countries, to 30 per cent for transition countries, to 45 per cent for developing countries. It examines the causes and consequences of this development using an integrated approach to explain deviant behaviour that combines findings from economic, sociological, and psychological research. The authors suggest that increasing taxation and social security contributions, rising state regulatory activities, and the decline of the tax morale are all driving forces behind this growth, and they propose a reform of state public institutions in order to improve the dynamics of the official economy.
Download or read book Size Causes and Consequences of the Underground Economy written by Friedrich Schneider and published by Routledge. This book was released on 2018-01-18 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bringing together top international researchers this book provides a worldwide coverage of underground economic activities. It presents estimates of the underground economy for 145 countries - the most comprehensive ever undertaken; an in-depth examination of the underground economy for a select number of these countries; and an analysis of the public policy implications through an assessment of how various governments have attempted to address this issue. The book brings together the latest research on tax evasion, tax morale and other underlying factors that have so significantly influenced participation in the underground economy. It provides a comprehensive overview of the size and development of the underground economy, its major causes and motivations and its effects on the legitimate economy. In addition, it reviews recent public policy concerns by a number of countries and how they have responded with measures to curb these underground economic activities.
Download or read book Nonlinearity Between the Shadow Economy and Level of Development written by Dong Frank Wu and published by International Monetary Fund. This book was released on 2019-03-01 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper is the first attempt to directly explore the long-run nonlinear relationship between the shadow economy and level of development. Using a dataset of 158 countries over the period from 1996 to 2015, our results reveal a robust U-shaped relationship between the shadow economy size and GDP per capita. Our results imply that the shadow economy tends to increase when economic development surpasses a given threshold or at least does not disappear. Our findings suggest that special attention should be given to the country’s level of development when designing policies to tackle issues related to the shadow economy.
Download or read book Underground Economies in Transition written by Edgar L. Feige and published by Routledge. This book was released on 2019-05-23 with total page 461 pages. Available in PDF, EPUB and Kindle. Book excerpt: Published in 1999, this work examines the crucial role played by unofficial and underground activities in the transitional economies of Central and Eastern Europe and new independent states. Countries undergoing radical transformations from socialism to capitalism experience fundamental changes in institutional rules governing property rights, government regulations, taxation and the appropriate conduct of public service. Underground and unofficial activities represents non-compliant economic behaviours involving evasion, avoidance, circumvention, abuse and/or corruption of the institutional rules as well as efforts to conceal these illicit behaviours from the view of public authorities. The book employs the conceptual framework of the new institutional economics to elaborate the theoretical relationship between underground activities and overall performance of transition economies. The social, cultural and economic causes of unofficial activities are examined as well as their consequences for economic policy and performance. Policy issues include the relationship between tax evasion and corruption, the underground economy and organized crime, state and regulation, and methods and consequences of legalization of the underground economy.
Download or read book Hiding in the Shadows written by Friedrich Schneider and published by . This book was released on 2002-01-01 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the role of the shadow, or underground, economy. Looks at ways of measuring it, the relationship between the shadow economy and the main stream economy, why it has been growing in size, and its effects on overall economic growth. How can states limit the size of the shadow economy, and does it matter that it exists?
Download or read book Institutions Institutional Change and Economic Performance written by Douglass C. North and published by Cambridge University Press. This book was released on 1990-10-26 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt: An analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies is developed in this analysis of economic structures.
Download or read book Private Sector Development in an Emerging World written by Diederik de Boer, Harald Sander, Katharina Friz, Antonella Anastasi and published by Walter de Gruyter GmbH & Co KG. This book was released on 2023-10-17 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Explaining the Shadow Economy in Europe Size Causes and Policy Options written by Mr.Ben Kelmanson and published by International Monetary Fund. This book was released on 2019-12-13 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the drivers, and reestimates the size of shadow economies in Europe, with a focus on the emerging economies, and recommends policies to increase formality. The size of shadow economies declined across Europe in recent years but remains significant, especially in Eastern Europe. In the emerging European economies, the key determinants of shadow economy size are regulatory quality, government effectiveness, and human capital. The paper argues that a comprehensive package of reforms, focused on country-specific drivers, is needed to successfully combat the shadow economy. The menu of policies most relevant for Europe’s emerging economies include: reducing regulatory and administrative burdens, promoting transparency and improving government effectiveness, as well as improving tax compliance, automating procedures, and promoting electronic payments.
Download or read book Money and Capital in Economic Development written by Ronald I. McKinnon and published by Brookings Institution Press. This book was released on 2010-12-01 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: This books presents a theory of economic development very different from the "stages of growth" hypothesis or strategies emphasizing foreign aid, trade, or regional association. Leaving these aside, the author breaks new ground by focusing on the use of domestic capital markets to stimulate economic performance. He suggests a "bootstrap" approach in which successful development would depend largely on policy choices made by national authorities in the developing countries themselves. Central to his theory is the freeing of domestic financial markets to allow interest rates to reflect the true scarcity of capital in a developing economy. His analysis leads to a critique of prevailing monetary theory and to a new view of the relation between money and physical capital—a view with policy implications for governments striving to overcome the vicious circle of inflation and stagnation. Examining the performance of South Korea, Taiwan, Brazil, and other countries, the author suggests that their success or failure has depended primarily on steps taken in the monetary sector. He concludes that monetary reform should take precedence over other development measures, such as tariff and tax reform or the encouragement of foreign capital investment. In addition to challenging much of the conventional wisdom of development, the author's revision of accepted monetary theory may be relevant for mature economies that face monetary problems.
Download or read book The U S Underground Economy written by Raffaela C. M. Wallner and published by GRIN Verlag. This book was released on 2011 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2008 in the subject English - Miscellaneous, grade: 2,0, Vienna University of Economics and Business, language: English, abstract: The phenomenon of underground economy can be observed all around the world, regardless of a country ́s state of development. It has been studied and discussed in literature for several decades. In the 1980s the size of the underground economy in the United States was higher than during World War II for the first time, and it continued to grow due to tax increases in the 1990s. In addition, globalization and the resulting greater competition as well as the increasing number of unregistered immigrants give rise to unrecorded activities. In this paper I will focus on the causes and effects of the underground economy in the United States. Therefore, I will first explain the main motivators for individuals to take action in the unofficial economy, such as a legal framework consisting of high tax schemes and social security burdens as well as the institutional quality in terms of bureaucracy and regulatory discretion. Second, I will examine some of the most affected sectors. In this context I will especially concentrate on underground immigrants, contraband trade, and money laundering as well as labor-intense services undertaken by not-registered workers. Finally, I will address the results and effects of the underground economy on the recorded one and its labor and money markets. In this section of the paper I will also show how the U.S. underground economy is related to other phenomena such as the budget deficit, the "gray area phenomenon" and corruption. In the final part of the paper I will focus on possible solutions to reduce the extent of underground activities. I will especially emphasize some methods to measure and estimate invisible economic action on the one hand and on the implementation of policy engagement on the other. A brief conclusion in the end sums up the main points and provides an overview
Download or read book The Handbook of Economic Development and Institutions written by Jean-Marie Baland and published by Princeton University Press. This book was released on 2020-01-21 with total page 786 pages. Available in PDF, EPUB and Kindle. Book excerpt: The definitive reference on the most current economics of development and institutions The essential role that institutions play in understanding economic development has long been recognized across the social sciences, including in economics. Academic and policy interest in this subject has never been higher. The Handbook of Economic Development and Institutions is the first to bring together in one single volume the most cutting-edge work in this area by the best-known international economists. The volume’s editors, themselves leading scholars in the discipline, provide a comprehensive introduction, and the stellar contributors offer up-to-date analysis into institutional change and its interactions with the dynamics of economic development. This book focuses on three critical issues: the definitions of institutions in order to argue for a causal link to development, the complex interplay between formal and informal institutions, and the evolution and coevolution of institutions and their interactions with the political economy of development. Topics examined include the relationship between institutions and growth, educational systems, the role of the media, and the intersection between traditional systems of patronage and political institutions. Each chapter—covering the frontier research in its area and pointing to new areas of research—is the product of extensive workshopping on the part of the contributors. The definitive reference work on this topic, The Handbook of Economic Development and Institutions will be essential for academics, researchers, and professionals working in the field.
