The size and development of the shadow economy: An empirical investigation from states of India

• 成果类型: Article
• 署名作者: Chaudhuri, Kausik; Schneider, Friedrich; Chattopadhyay, Sumana
• 署名单位: Johannes Kepler University Linz; University of Missouri System; University of Missouri Columbia
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2005.02.011
• 发表日期: 2006
• 页码: 428-443
• 关键词: shadow economy of Indian states; tax burden; governance; political economy of the shadow economy

摘要

Using the state level data from India, this paper investigates the size of the hidden economy in Indian states over the period 1974/75 to 1995/96. Our analysis has shown that after liberalization of the Indian economy in 1991/92, the growth in the size of the hidden economy has decreased on an average. Our results show that the growth in the size of the hidden economy is approximately 4% less in scheduled election years than in all other years. We also demonstrate that the growth is significantly lower in those states where the coalition government is in power. An increased growth of newspapers and the literacy rates translate to cleaner governance, e.g. to fewer amounts of shadow economy activities in the economy. (c) 2005 Elsevier B.V. All rights reserved.