Corvinus
Corvinus

Shadow economies and tax evasion: The case of the Czech Republic, Poland and Hungary

Nchor, Dennis (2021) Shadow economies and tax evasion: The case of the Czech Republic, Poland and Hungary. Society and Economy, 43 (1). pp. 21-37. DOI https://doi.org/10.1556/204.2020.00029

[img]
Preview
PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
1MB

Official URL: https://akjournals.com/view/journals/204/43/1/article-p21.xml


Abstract

This paper examines the drivers and the size of the shadow economies of the Czech Republic, Hungary and Poland. It also investigates the tax losses associated with these shadow economic activities in all three countries. The Multiple Indicators and Multiple Causes (MIMIC) model is applied and uses time series data covering the period 1990–2019. The key findings show that the sizes of the shadow economies of the Czech Republic, Hungary and Poland are 10.44, 11.18 and 20.47% respectively. The results also show that the average size of the shadow economies between 1990–2019 was 14.92% in the Czech Republic, 18.72% in Hungary and 22.85% in Poland. The Czech Republic loses 3.13% of tax revenue from goods and services and 2.83% from incomes and profits as a result of the shadow economy, while Hungary loses 5.05% of tax revenue from goods and services and 1.68% from incomes and profits. Poland loses 5.25% of tax revenue from goods and services and 4.34% from incomes and profits.

Item Type:Article
Uncontrolled Keywords:shadow economy, structural equation model, tax evasion, MIMIC model
JEL classification:C39 - Multiple or Simultaneous Equation Models; Multiple Variables: Other
C51 - Model Construction and Estimation
C82 - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
Subjects:Economic development
Economic policy
DOI:https://doi.org/10.1556/204.2020.00029
ID Code:6414
Deposited By: Veronika Vitéz
Deposited On:13 Apr 2021 10:46
Last Modified:13 Apr 2021 10:46

Repository Staff Only: item control page

Downloads

Downloads per month over past year

View more statistics