Research Article
An Empirical Estimation of the Underground Economy in Ghana
Table 2
Main causes of the increase of the shadow economy.
| Factors influencing the shadow economy | The most important driving forces are | Influence on the shadow economy (in%)1 |
| () Increase of the tax and social Security contribution burdens | 35–38% | 45–52% | () Intensity of state regulations | 8–10% | 10–15% | () Social transfers | 5–7% | 5–8% | () Specific labor market regulations | 5–7% | 5–8% | () Public sector services | 5–7% | 5–8% | () Tax morale2 | 22–25% | — | Overall influence | 76–94% | 70–90% |
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Average values of empirical results of 28 studies.
2Average values of “only” 15 studies. Source: Schneider, 2006 [16].
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