Buradasınız

The Effect of Informal Economy on the European Debt Crisis

Journal Name:

Publication Year:

Abstract (2. Language): 
The informal economy poses a problem not only for developing countries today; it also appears to be a growing problem in all advanced countries of the world. This paper empirically investigates whether the size of informal economy has any effect on overindebtedness in the context of Europe. Thus, we attempt to provide empirical evidence that it is not a coincidence that those countries most severely affected from the crisis are also the ones with the highest size of informal economy, such as Greece, Italy, Spain and Portugal. The empirical analysis is based on the official data published by European Statistical Agency and the World Bank. The relationship between the informal economy and indebtedness is examined through GMM model on the panel data of 27 EU countries for the years 1999 through 2007. Findings show that there is a significant relationship between informal economy and indebtedness.

JEL Codes:

REFERENCES

References: 

Arellano, M., Bond, S. (1991). “Some Tests Of Specification For Panel Data: Monte
Carlo Evidence and an Application to Employment Equations.” Review of
Economic Studies, 58, pp: 277-297.
Baltagi, Badi H. (2005): “Econometric Analysis of Panel Data / p.26” 3rd Edition.
England, John Wiley&Sons Ltd.
Carter, Michale (1984): “Issues In the Hidden Economy A Survey”, Economic
Record, Vol 60, pp:209-221
Feige, Edgar L. (1996): “Overseas Holdings of U.S. Currency and the Underground
Economy”, in: Pozo, Susan (ed.): Exploring the Underground Economy.
Kalamazoo, Michigan.
Fiege, E.L. (1986): “Re-examination of Underground Economy in the United
States: A Comment on Tanzi,” IMF Staff Papers, Vol.33, Issue:4,
December, pp.768-81
Fiege, E.L. (1990): “Defining and Estimating Underground and Informal
Economies: The New Institional Economics Approach,” World
Development, Vol.18, No.7.
Güloğlu, Bülent, Tekin, R.B., (2012), “A Panel Causality Analysis of the
Relationship among Research and Development, Innovation, and
Economic Growth in High-Income OECD Countries”, Eurasian Economic
Review, Vol.2, No.1, 2012 pp. 32-47.
Holtz-Eakin, D.,W.K. Newey, and H. S. Rosen (1988). “Estimating Vector
Autoregressions With Panel Data”. Econometrica 56: 1371–1395.
http://wwwwds.
worldbank.org/external/default/WDSContentServer/IW3P/IB/2010/1
0/14/000158349_20101014160704/Rendered/PDF/WPS5356.pdf
Ilgın, Yılmaz (1995): “Kayıt Dışı Ekonomi ve Türkiye’deki Boyutları”, Unpublished
Masters Thesis, State Planning Organization, Ankara.
Karagül, Mehmet (1997): “Kayıt Dışı Ekonomi ve Türkiye’de Kayıt Dışı
Ekonominin İncelenmesi”, Celal Bayar Üniversitesi İİBF, Yönetim ve
Ekonomi Dergisi, Issue 3: pp.185-205
Kök, Recep, Şapçı, Onur (2006): “Kayıt Dışı Ekonomi ve Türkiye Ekonomisi’ndeki
Büyüklüğünün Tahmin Edilmesi”, Turkish Economic Association
International Conference on Economics, Ankara, 11-13 September 2006.
Saraç, Mehmet (2010): “Measuring the Effectiveness of Internal Credit Rating: An
Application on a Participation Bank”, International Research Journal of
Finance and Economics, Issue 53, pp. 10-118.
Savaşan, Fatih (2005): “Avrupa Birliği Genişleme Sürecinde Saklı ve Informal
Ekonomiler” Arıkan, Harun and Muhsin Kar (editors), Türkiye Avrupa
Birliği İlişkileri: Siyasal, Bölgesel ve Ekonomik Boyutlar, Seçkin, 345-376
M. SARAÇ, R. BAŞAR
37 Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, 2014, Yıl:2, Cilt:2, Sayı:2
Schneider F. (2005): “Shadow Economies of 145 Countries all over the World:
Estimation Results over the Period 1999 to 2003” Yaşar University
International Conference, Çeşme, 2005
Schneider, F. (2003): “The Size and Development of the Shadow Economies
and Shadow Economy Labor Force of 22 Transition and 21 OECD
Countries: What Do We Really Know”, The Informal Economy in the
EU Accession Countries, Size, Scope, Trends and Challenges to the
Process of EU Enlargement, Boyan Belev (editor), Center for the Study
of Democracy, www.csd.bg, 23-62
Schneider, Fredrich (2000): “Illegal Activities And The Generation of Value
Added: Size, Causes And Measurement of Shadow Economies”, Bulletin
on Narcotics, No 1/2
Tanzi, Vito (1983): “The Underground Economy in the United States: Annual
Estimates, 1930-80” International Monetary Fund Staff Papers, 3(2), June
1983:283-305
Tanzi, Vito (1986): “ The Underground Economy in the United States, Reply
to comments by Feige, Thomas, and Zilberfarb.” IMF - Staff Papers, 33/
4, pp. 799-811.
Tanzi, Vito (1999): “Uses and Abuses of Estimates of the Underground Economy,”
The Economic Journal 109/456, pp.338-340
Temel, A. Şimşek, A. Yazıcı, K. (1994): Kayıtdışı ekonomi: Tanımı, Tespit
Yöntemleri ve Türk Ekonomisinde Büyüklüğü, The State Planning
Organization, Ankara.
The World Bank (2010): “Shadow Economies All over the World - New Estimates
for 162 Countries from 1999 to 2007”, Policy Research Working Paper
5356
Yetim, Sedat (1999): Türkiye’de Vergi Kaçakçılığı ve Kayıt Dışı Ekonomi, Turkish
Banks Association, Istanbul.

Thank you for copying data from http://www.arastirmax.com