The size and development of the shadow economy: An empirical investigation from states of India |
| |
Authors: | Kausik Chaudhuri Friedrich Schneider Sumana Chattopadhyay |
| |
Institution: | aIGIDR, Mumbai, India;bDepartment of Economics, Johannes Kepler, University of Linz, Altenbergerstrasse 69, A-4040 Linz-Auhof, Austria;cUniversity of Missouri, Columbia, USA |
| |
Abstract: | 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. |
| |
Keywords: | Shadow economy of Indian states Tax burden Governance Political economy of the shadow economy |
本文献已被 ScienceDirect 等数据库收录! |
|