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Impact of education and government effectiveness on the shadow economy

Author

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  • Sorina Emanuela ȘTEFONI

    (Bucharest University of Economic Studies, Romania)

  • Andreea DRAGHIA

    (Bucharest University of Economic Studies, Romania)

Abstract

Shadow economy activities are a central focus around the world and countries engage in trying to contain these activities through regulations, education, and public services. The attempts to constraint the size of this phenomenon are increasingly and a lot of countries are fighting against the advancement of the informal sector. Therefore, this paper aims to estimate what is the effect of education and government efficiency on the shadow economy and whether these two components are essential in strengthening strategies by states to combat fraudulent activities specific to the underground economy.

Suggested Citation

  • Sorina Emanuela ȘTEFONI & Andreea DRAGHIA, 2020. "Impact of education and government effectiveness on the shadow economy," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(624), A), pages 75-84, Autumn.
    • Handle: RePEc:agr:journl:v:3(624):y:2020:i:3(624):p:75-84
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    References listed on IDEAS

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    1. Ludger Vessman & Jerik Hanushek, 2007. "The role of education quality in economic growth (Part I)," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 2, pages 86-116.
    2. Hanushek, Eric A. & Woessmann, Ludger, 2007. "The role of education quality for economic growth," Policy Research Working Paper Series 4122, The World Bank.
    3. Leandro Medina & Mr. Friedrich Schneider, 2018. "Shadow Economies Around the World: What Did We Learn Over the Last 20 Years?," IMF Working Papers 2018/017, International Monetary Fund.
    4. Schneider Friedrich & Buehn Andreas, 2017. "Shadow Economy: Estimation Methods, Problems, Results and Open questions," Open Economics, De Gruyter, vol. 1(1), pages 1-29, March.
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    Cited by:

    1. Paraskevi Koufopoulou & Colin C. Williams & Athanassios Vozikis & Kyriakos Souliotis & Antonios Samprakos, 2021. "Estimating Shadow Economy Size in Greece 2000 - 2018: A Flexible MIMIC Approach," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(3-4), pages 23-47, July-Dece.
    2. Ionela BUTU & Petre BREZEANU & Adriana PORUMBOIU & Sorina Emanuela ȘTEFONI, 2021. "The Relationship Between Vat Gap And Economic Or Institutional Variables," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 30(2), pages 250-259, December.
    3. Laureti, Lucio & Costantiello, Alberto & Leogrande, Angelo, 2023. "The Role of Government Effectiveness in the Light of ESG Data at Global Level," MPRA Paper 115998, University Library of Munich, Germany.

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