Workshop 03: Causes and Effects of the Shadow Economy: MENA and the Mediterranean Countries versus the Rest of the World
“Shadow economy or underground/unrecorded economy is prevalent in most countries, although the scope of such activity varies substantially. Whereas the prevalence of the shadow economy has been recognized both by academics and policymakers, formal investigations of its causes and effects are relatively recent and many issues remain unresolved and underexplored. Some of the key aspects requiring additional research focus include but are not limited to: (i) the relationship between the size of shadow economy and income levels of nations; (ii) the relationship of the shadow economies with other forms of illegal activity, notably corruption; (iii) the impact of the size and scope of government activity on unofficial activity; and (iv) the role of non-economic forces, including institutions, socio-economic norms, and historical precedents, in shaping the size, persistence and scope of the shadow economy. The proposed workshop seeks to synthesize the extant research and encourage new investigations with special attention to the MENA region and the developing and emerging economies around the Mediterranean.”
