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

See all articles by Cosimo Magazzino

Cosimo Magazzino

University of Rome III; Royal Economic Society; Italian Economic Association

Antonino Buscemi

University of Rome Tor Vergata - Tor Vergata Economics University Foundation

Alem Hagos Yallwe

University of Rome Tor Vergata - Tor Vergata Economics University Foundation

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

Magazzino, Cosimo and Buscemi, Antonino and Yallwe, Alem Hagos, The Underground Economy in the Caribbean Countries (December 3, 2011). 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, Available at SSRN: https://ssrn.com/abstract=2333424

Cosimo Magazzino (Contact Author)

University of Rome III ( email )

Via Ostiense 139
Rome, RM 00154
Italy

HOME PAGE: http://scienzepolitiche.uniroma3.it/cmagazzino/

Royal Economic Society ( email )

London
United Kingdom

Italian Economic Association ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy

HOME PAGE: http://www.siecon.org/online/en/

Antonino Buscemi

University of Rome Tor Vergata - Tor Vergata Economics University Foundation ( email )

Via Columbia 2
Rome, 00133
Italy

Alem Hagos Yallwe

University of Rome Tor Vergata - Tor Vergata Economics University Foundation ( email )

Via Columbia 2
Rome, 00133
Italy

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