Work detail

Natural Resource Curse and Shadow Economy: Emprical Evidence

Author: Mgr. Anna Chen
Year: 2021 - winter
Leaders: prof. Roman Horváth Ph.D.
Work type: Economic Theory
Language: English
Pages: 65
Awards and prizes:
Abstract: The study aims to investigate the impact of natural resource wealth on the shadow economy. The
theoretical section provides the basis of understanding the nature of two phenomena and discusses
the possible transmission channels through which natural resources might influence the shadow
economy. Consequently, the key determinants of the shadow economy are examined by static and
dynamic models. Natural resource abundance is proxied by natural resource rents. We employ a
panel data set for 109 countries for the period from 1996 to 2006. The results reveal that resource
wealth is associated with the decrease of the shadow economy. This result is robust for different
resource types (durable and non-durable), and the effect is more profound for countries with a low
income level.




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