• Revisiting the nexus between globalization and the shadow economy: Untying the influences of de jure vs. de facto globalization

    5 days ago - By The World Economy

    Abstract
    This paper examines the relationship between globalization and the size of the shadow economy, focusing on the differential effects of de jure and de facto globalization. Using panel data on over 120 countries from 1991 to 2017, the results suggest that globalization reduces the prevalence of the shadow economy. Furthermore, after differentiating between de jure and de facto globalization, we find that both de facto and de jure globalization are effective in curbing the spread of the shadow economy, with de jure globalization showing a marginally larger impact. However, once we...
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