The Underground Economy in the Caribbean Countries
Magazzino, C., Buscemi, A., Hagos, Y.A., (2011), The underground economy in the Caribbean countries, International Journal of Economics and Business Modeling, 2, 2, 124-132
9 Pages Posted: 30 Sep 2013
Date Written: December 3, 2011
Abstract
The purpose of this study is to analyze the underground economy in the Caribbean countries for the period 1970-2009, using annual data with a panel approach, including a set of social and institutional variables (the degree of urbanization, the Index of Globalization, the Index of Participation and the Index of Competition). After a brief introduction, a survey of the economic literature on this issue is shown, before estimating the determinants of the underground economy. The higher tax burden, the higher the tax evasion and higher currency holdings relative to M2. Some notes on the policy implications of this analysis conclude the paper.
Keywords: Underground economy, Caribbean countries, tax burden, governance
JEL Classification: O17, D78, H11, H26
Suggested Citation: Suggested Citation