Williams, C.C. (2014) Explaining Cross-national Variations in the Size of the Shadow Economy in Central and Eastern Europe. Debatte, 22 (2). 241 - 258 . ISSN 1469-3712
Abstract
Cross-national variations in the size of the shadow economy have been variously explained to be a result of: economic underdevelopment (modernization theory); high taxes, public sector corruption and state interference in the free market (neoliberal theory) or inadequate levels of state intervention to protect workers (political economy theory). The aim of this paper is to start to evaluate critically these competing theories by comparing crossnational variations in the size of the shadow economy with the various aspects of the broader economic and social environment denoted as determinants of the shadow economy in each of the theories. The finding is that across Central and Eastern Europe, smaller shadow economies prevail in wealthier, more modern and equal societies and countries with higher levels of social protection expenditure, greater state intervention in the labour market, more effective social transfers and lower levels of poverty. No evidence is, therefore, found to support the neoliberal suggestion that decreasing tax rates, deregulating the economy and cutting back work and welfare expenditure by the state will reduce the shadow economy. The paper concludes by discussing the theoretical and policy implications of the findings.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2014 Taylor & Francis. This is an author produced version of a paper subsequently published in Debatte. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | informal economy; undeclared work; corruption; tax evasion; Eastern Europe |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 01 Jul 2015 09:39 |
Last Modified: | 16 Nov 2016 10:11 |
Published Version: | http://dx.doi.org/10.1080/0965156X.2014.978103 |
Status: | Published |
Publisher: | Taylor & Francis |
Refereed: | Yes |
Identification Number: | 10.1080/0965156X.2014.978103 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:87289 |