The Shadow Economy in Colombia: Size and Effects on Economic Growth
Using the currency demand approach, size and development of Colombia’s shadow economy are estimated over the period from 1980 to 2012. The results show a great extent of shadow economic activity varying over time between 27 and 56% of GDP. The most important factors driving the shadow economy are indirect taxation and unemployment. Analyzing the interaction between shadow and official economy, the shadow economy has a negative effect on the official one. Average growth of real per capita GDP is 1.86% between 1980 and 2012, without shadow economy it would have been higher around 0.12 percentage points on average.
Year of publication: |
2014
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Authors: | Friedrich, Schneider ; Bettina, Hametner |
Published in: |
Peace Economics, Peace Science, and Public Policy. - De Gruyter, ISSN 1554-8597. - Vol. 20.2014, 2, p. 33-33
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Publisher: |
De Gruyter |
Saved in:
Online Resource
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