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Military versus non-military government spending and the shadow economy

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  • Goel, Rajeev K.
  • Saunoris, James W.

Abstract

Using recent cross-national data, this research examines the determinants of the shadow economy, focusing on the relative effects of military and non-military government spending. Results show that, other things being the same, nations with larger military spending have smaller shadow economies, while the effect of non-military government spending is statistically insignificant. These findings stand up to various robustness checks.

Suggested Citation

  • Goel, Rajeev K. & Saunoris, James W., 2014. "Military versus non-military government spending and the shadow economy," Economic Systems, Elsevier, vol. 38(3), pages 350-359.
    • Handle: RePEc:eee:ecosys:v:38:y:2014:i:3:p:350-359
    DOI: 10.1016/j.ecosys.2013.12.004
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    Cited by:

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    2. Ahmad, Waqar & Hussain, Babar, 2023. "Fiscal Policy Effects on Shadow Economy: Empirical Evidence from Developing Countries," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 30(2), July.
    3. Knobel, Alexander (Кнобель, Александр) & Chokaev, Bekhan (Чокаев, Бекхан) & Mironov, Alexey (Миронов, Алексей), 2015. "Comparative Analysis of the Effectiveness of Public Spending in the Field of National Defense and Law Enforcement [Сравнительный Анализ Эффективности Госрасходов В Сфере Национальной Обороны И Прав," Published Papers mn47, Russian Presidential Academy of National Economy and Public Administration.
    4. Joseph Keneck-Massil & Alphonse Noah, 2019. "Shadow economy and educational systems in Africa," Economics Bulletin, AccessEcon, vol. 39(2), pages 1467-1478.
    5. Rajeev K. Goel & James W. Saunoris, 2016. "Casting a Long Shadow? Cross-border Spillovers of Shadow Economy across American States," Public Finance Review, , vol. 44(5), pages 610-634, September.

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    More about this item

    Keywords

    Military spending; Non-military spending; Shadow economy; Government; Regulation;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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