Document Type
Article
Language
eng
Publication Date
8-2006
Publisher
Elsevier
Source Publication
Journal of Development Economics
Source ISSN
0304-3878
Original Item ID
DOI: 10.1016/j.jdeveco.2005.02.011
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.
Recommended Citation
Chaudhuri, Kausik; Schneider, Friedrich; and Chattopadhyay, Sumana, "The Size and Development of the Shadow Economy: An Empirical Investigation from States of India" (2006). College of Communication Faculty Research and Publications. 33.
https://epublications.marquette.edu/comm_fac/33
Comments
Accepted version. Journal of Development Economics, Vol. 80, No. 2 (August 2006): 428-443. DOI. © 2006 Elsevier. Used with permission.
Sumana Chattopadhyay was affiliated with the University of Missouri at the time of publication.