Dreher, Axel; Schneider, Friedrich - 2006 - This version: 05 January 2006
This paper analyzes the influence of the shadow economy on corruption and vice versa. We hypothesize that corruption … hypotheses are tested for a crosssection of 120 countries and a panel of 70 countries for the period 1994-2002. Our results show … that the shadow economy reduces corruption in high income countries, but increases corruption in low income countries. We …