<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This study was carried out to empirically investigate the relationships between corruption and shadow economy among the European Union countries, over the period 2005-2014. Moreover, since one would expect corruption and shadow economy to be more common in poorer countries, this study was therefore carried out to determine how corruption and shadow economy affect economic development. The empirical findings of this study confirm a high and positive relationship between corruption and shadow economy, therefore a higher level of corruption involves a higher level of shadow economy. Regarding the influence of corruption and shadow economy on economic growth, a high and negative relationship was found. This means that increasing corruption and shadow economy negatively affects economic growth.</p></abstract>

This study was carried out to empirically investigate the relationships between corruption and shadow economy among the European Union countries, over the period 2005-2014. Moreover, since one would expect corruption and shadow economy to be more common in poorer countries, this study was therefore carried out to determine how corruption and shadow economy affect economic development. The empirical findings of this study confirm a high and positive relationship between corruption and shadow economy, therefore a higher level of corruption involves a higher level of shadow economy. Regarding the influence of corruption and shadow economy on economic growth, a high and negative relationship was found. This means that increasing corruption and shadow economy negatively affects economic growth.

Corruption, Shadow Economy and Economic Growth: An Empirical Survey Across the European Union Countries

Studia Universitatis „Vasile Goldis” Arad – Economics Series

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

This study was carried out to empirically investigate the relationships between corruption and shadow economy among the European Union countries, over the...

Corruption, Shadow Economy and Economic Growth: An Empirical Survey Across the European Union Countries

Published Online: Jul 14, 2017

Page range: 19 - 32

Received: Mar 01, 2017

Accepted: May 01, 2017

DOI: https://doi.org/10.1515/sues-2017-0006

Keywords
Corruption, shadow economy, economic growth

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Corruption, Shadow Economy and Economic Growth: An Empirical Survey Across the European Union Countries

Published Online: Jul 14, 2017

Page range: 19 - 32

Received: Mar 01, 2017

Accepted: May 01, 2017

DOI: https://doi.org/10.1515/sues-2017-0006

KeywordsCorruption, shadow economy, economic growth

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Corruption, shadow economy, economic growth