Shadow Economies: Size, Causes, and Consequences
01 Mar 2000-Journal of Economic Literature (American Economic Association)-Vol. 38, Iss: 1, pp 77-114
TL;DR: In this paper, the size of the shadow economy in 76 developing, transition, and OECD countries is estimated using various methods, and the average size varies from 12 percent of GDP for OECD countries, to 23 percent for transition countries and 39 percent for developing countries.
Abstract: Using various methods, the size of the shadow economy in 76 developing, transition, and OECD countries is estimated. Average size varies from 12 percent of GDP for OECD countries, to 23 percent for transition countries and 39 percent for developing countries. Increasing taxation and social security contributions combined with rising state regulations are driving forces for the increase of the shadow economy, especially in OECD countries. According to some findings, corruption has a positive impact on the size of the shadow economy, and a growing shadow economy has a negative effect on official GDP growth.
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TL;DR: In this article, the authors present new data on the regulation of entry of start-up firms in 85 countries, covering the number of procedures, official time, and official cost that a startup must bear before it can operate legally.
Abstract: We present new data on the regulation of entry of start-up firms in 85 countries. The data cover the number of procedures, official time, and official cost that a start-up must bear before it can operate legally. The official costs of entry are extremely high in most countries. Countries with heavier regulation of entry have higher corruption and larger unofficial economies, but not better quality of public or private goods. Countries with more democratic and limited governments have lighter regulation of entry. The evidence is inconsistent with public interest theories of regulation, but supports the public choice view that entry regulation benefits politicians and bureaucrats.
2,811 citations
TL;DR: Botero et al. as discussed by the authors investigated the regulation of labor markets through employment, collective relations, and social security laws in 85 countries and found that the political power of the left is associated with more stringent labor regulations and more generous social security systems, and that socialist, French and Scandinavian legal origin countries have sharply higher levels of labor regulation than do common law countries.
Abstract: Author(s): Botero, Juan; Djankov, Simeon; La Porta, Rafael; Lopez-de-Silanes, Florencio; Shleifer, Andrei | Abstract: We investigate the regulation of labor markets through employment, collective relations, and social security laws in 85 countries. We find that the political power of the left is associated with more stringent labor regulations and more generous social security systems, and that socialist, French and Scandinavian legal origin countries have sharply higher levels of labor regulation than do common law countries. However, the effects of legal origins are larger, and explain more of the variation in regulations, than those of politics. Heavier regulation of labor is associated with lower labor force participation and higher unemployment, especially of the young. These results are most naturally consistent with legal theories, according to which countries have pervasive regulaory styles inherited from the transplantation of legal systems.
1,615 citations
TL;DR: This paper presented an up-to-date, comprehensive tabulation of EF for known pyrogenic species based on measurements made in smoke that has cooled to ambient temperature, but not yet undergone significant photochemical processing.
Abstract: . Biomass burning (BB) is the second largest source of trace gases and the largest source of primary fine carbonaceous particles in the global troposphere. Many recent BB studies have provided new emission factor (EF) measurements. This is especially true for non-methane organic compounds (NMOC), which influence secondary organic aerosol (SOA) and ozone formation. New EF should improve regional to global BB emissions estimates and therefore, the input for atmospheric models. In this work we present an up-to-date, comprehensive tabulation of EF for known pyrogenic species based on measurements made in smoke that has cooled to ambient temperature, but not yet undergone significant photochemical processing. All EFs are converted to one standard form (g compound emitted per kg dry biomass burned) using the carbon mass balance method and they are categorized into 14 fuel or vegetation types. Biomass burning terminology is defined to promote consistency. We compile a large number of measurements of biomass consumption per unit area for important fire types and summarize several recent estimates of global biomass consumption by the major types of biomass burning. Post emission processes are discussed to provide a context for the emission factor concept within overall atmospheric chemistry and also highlight the potential for rapid changes relative to the scale of some models or remote sensing products. Recent work shows that individual biomass fires emit significantly more gas-phase NMOC than previously thought and that including additional NMOC can improve photochemical model performance. A detailed global estimate suggests that BB emits at least 400 Tg yr−1 of gas-phase NMOC, which is almost 3 times larger than most previous estimates. Selected recent results (e.g. measurements of HONO and the BB tracers HCN and CH3CN) are highlighted and key areas requiring future research are briefly discussed.
1,472 citations
Cites background from "Shadow Economies: Size, Causes, and..."
...Sinha et al. (2004) measured numerous emissions from one African tropical dry forest (Miombo) understory fire....
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..., 2003). Photolysis is the primary daytime fate of nitrous acid (HONO), which forms OH and NO with unit quantum yield within 10–20 min (Sander et al., 2006). Thus, HONO can be an important source of the OH radical, which then initiates attack on NMOCs (FinlaysonPitts and Pitts, 2000). Significant, direct emissions of gasphase HONO from BB at ∼3% of NOx was first reported for a savanna fire by Trentmann et al. (2005). A range of 1HONO/1NOx (5–30%) was then observed in a laboratory experiment burning various types of southern African biomass (Keene et al....
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...Small informal firms account for over 50% of non-agricultural employment and 25–75% of gross domestic product in both Latin America and Africa (Ranis and Stewart, 1994; Schneider and Enste, 2000)....
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TL;DR: In this article, the authors investigate whether the industrial relations climate in Indian states has affected the pattern of manufacturing growth in the period 1958-92 and show that pro-worker ammendments to the Industrial Disputes Act are associated with lowered investment, employment, productivity and output in registered manufacturing.
Abstract: This paper investigates whether the industrial relations climate in Indian states has affected the pattern of manufacturing growth in the period 1958-92. We show that pro-worker ammendments to the Industrial Disputes Act are associated with lowered investment, employment, productivity and output in registered manufacturing. Regulating in a pro-worker direction is also associated with increases in urban poverty. This suggests that attempts to redress the balance of power between capital and labor can end up hurting the poor.
1,137 citations
Posted Content•
TL;DR: In this article, the authors investigate whether the industrial relations climate in Indian States has affected the pattern of manufacturing growth in the period 1958-92 and show that pro-worker amendments to the Industrial Disputes Act are associated with lowered investment, employment, productivity and output in registered manufacturing.
Abstract: This paper investigates whether the industrial relations climate in Indian States has affected the pattern of manufacturing growth in the period 1958-92. We show that pro-worker amendments to the Industrial Disputes Act are associated with lowered investment, employment, productivity and output in registered manufacturing. Regulating in a pro-worker direction is also associated with increases in urban poverty. This suggests that attempts to redress the balance of power between capital and labour can end up hurting the poor.
1,110 citations
References
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01 Jan 1990TL;DR: In this paper, an institutional approach to the study of self-organization and self-governance in CPR situations is presented, along with a framework for analysis of selforganizing and selfgoverning CPRs.
Abstract: Preface 1. Reflections on the commons 2. An institutional approach to the study of self-organization and self-governance in CPR situations 3. Analyzing long-enduring, self-organized and self-governed CPRs 4. Analyzing institutional change 5. Analyzing institutional failures and fragilities 6. A framework for analysis of self-organizing and self-governing CPRs Notes References Index.
16,852 citations
10,424 citations
8,129 citations
"Shadow Economies: Size, Causes, and..." refers background in this paper
...17 See Gary S. Becker (1965) for the theoretical foundation, and F. Thomas Juster and Frank P. Stafford (1991) for a more detailed analysis of the allocation of time. economies appear in countries with higher tax revenues, if achieved by lower tax rates, fewer laws and regulations, and less bribery…...
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TL;DR: In this paper, a newly assembled data set consisting of subjective indices of corruption, the amount of red tape, the efficiency of the judicial system, and various categories of political stability for a cross section of countries is analyzed.
Abstract: This paper analyzes a newly assembled data set consisting of subjective indices of corruption, the amount of red tape, the efficiency of the judicial system, and various categories of political stability for a cross section of countries. Corruption is found to lower investment, thereby lowering economic growth. The results are robust to controlling for endogeneity by using an index of ethnolinguistic fractionalization as an instrument.
7,191 citations
"Shadow Economies: Size, Causes, and..." refers background in this paper
...Paolo Mauro (1995) finds a significant negative correlation between a corruption index and the investment rate or rate of GDP growth....
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