Corruption and the Shadow Economy : A Structural Equation Model Approach

The relationship between corruption and the shadow economy is not clear. Theoretically, they either substitute or complement each other - exhibiting either a negative or positive relationship. This paper - using a structural equation model with two latent variables - extracts information on various dimensions of corruption and the shadow economy to contribute to the debate on their relationship. It presents empirical evidence of a positive relationship between the shadow economy and corruption. The results show that the shadow economy influences corruption more than corruption influences the shadow economy

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Year of publication:	2009
Authors:	Bühn, Andreas
Other Persons:	Schneider, Friedrich (contributor)
Publisher:	[2009]: [S.l.] : SSRN
Subject:	Korruption \| Corruption \| Schattenwirtschaft \| Underground economy \| Strukturgleichungsmodell \| Structural equation model \| Welt \| World \| Schätzung \| Estimation

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