Iranian Journal of Economic Research

Whether shadow economy threats economic growth? (case study: Iran)

Authors

Hossein Mehrabi Boshrabadi 1
Somayeh Kouchakzadeh 2
Hamid taboli 3

1 Ph.D, Associate Professor, Department of Agricultural Economics, Shahid Bahonar University of Kerman

2 M.Sc, Department of Economics, Shahid Bahonar University of Kerman

3 Ph.D, Assistant Professor of Economics, valieasr University of Rafsanjani

Abstract
One of the main concerns that many countries of the world are encountering, is some economic activities which are usually hidden from official view. These activities could effect deviation from correct position and prescribe incorrect polices.
In this study, after short review on concept and different distances of shadow economy to try that investigated effects of shadow economy volume on economic growth for 1981-2007 by vector error correction model (VECM). Shadow economy was estimated by fuzzy logic method. Results indicated that in Iran, with increase of one percentage size of shadow economy, 0/38 percentage diminished economic growth.

Keywords

shadow economy
growth economic
Vector Error Correction Model (VECM)
Iran

  • Receive Date 27 April 2016
  • First Publish Date 27 April 2016

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