ASSESSING THE IMPACTS OF PERSONAL AND SOCIETAL NORMS AND PUBLIC STATUS ON TAX MORALE AND SHADOW ECONOMY BEHAVIORS: A WORLDWIDE APPROACH (Published)
More and more people around the world are operating businesses off the data grid in order to avoid payment of taxes. The boom in underground economies leave governments insufficient revenue to provide adequate public services, which include health care, roads, education, or even better tax collection. Numerous literatures exist on the single aspect of the hidden economy focusing on the size, causes, consequences, characterizing of its presence, a current study is lacking on the impacts of people’s perception on the growth of shadow economy. It is likely that this dearth of research on the impacts of peoples’ perception regarding underground economy activities in the past is the result of the difficulties in providing reliable official indicators for direction of intended government policy measures. Presently, attention is being drawn on people’s perceptions towards the shadow economy. This research study was conducted to address these limitations relating to underground economic activities from peoples’ perspective.
Research experts on countries that are transiting from one economic state to another (transition countries) and developing countries have claimed that a large part of economic activities were done within the shadow. In applying the estimation techniques for measuring underground economy for the period 1995–2008, the results indicated the size of shadow activities to be 35–44% of GDP for developing economies, 21–30% of GDP for the countries transiting from communist to capitalist economy (transition economies) and 14–16% of GDP for the Organization for Economic Co-operation and Development (OECD) economies. For advance economies, the value of underground activities grew from 7.9% of GDP in 1976 to about 16% in 2008. Since 2005, academic and political debate on development finance and development aid has raised the issue that shadow economy in countries worldwide is becoming larger than can be imagined, consequently, the need to be concerned about its composition.
THE RELATIONSHIPS BETWEEN CORRUPTION, POVERTY, AND THE RISING UNDERGROUND ECONOMIC ACTIVITIES IN DEVELOPING ECONOMIES- A COMPARATIVE ANALYSIS OF NIGERIA (Published)
An explanation and exploration is given concerning issues pointedly concerned with the impacts of: underground economy on corruption; and the relationship with poverty level in developing economies. This relationship was the particular linkage such that quite often shadow economy and corruption are seen by researchers as twins, who need each other or fight against each other. Most countries of the world, including the United Kingdom, the United States, Canada, Netherlands, and Nigeria in particular, a large amount of government revenue are derived from taxes. This revenue inevitably shrinks through underground economy and corrupt practices. Therefore, shadow economy has been adjudged the most formidable attendant human practice that reduces the revenues owed to the government, consequently, shadow economy induced poverty in developing economies. Since 1990, problems of shadow economy have become a major concern for governments and policy makers, which therefore, caused increased attention among researchers, economic communities, and social scientists