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Determinants of the Informal Economy: The Importance of Regional Factors AgEcon
Krakowski, Michael.
This paper analyses the determinants of the size of the informal economy using cross-country regressions. Two sets of global data using indirect estimation techniques and the perception of business leaders for 109 countries as well as a regional set for Latin America based on direct data are used to estimate the size of the informal economies. Indirect estimation techniques arrive at higher estimates of the size of the informal economy than the perceptions of business leaders because they include not only the (fundamentally legal) activities of the informal sector, but also those activities which are illegal per se. Both kinds of estimate show strong regional differences in the size of the informal economies. Regressions on a set of indicators covering the...
Tipo: Working or Discussion Paper Palavras-chave: Informal sector; Tax evasion; Business regulation; Political Economy; O17; H26.
Ano: 2005 URL: http://purl.umn.edu/26313
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