The Shadow Economy and Corruption in ECO Countries

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Gokcekus O., Bagirzadeh E., Scribner D.

SOSYOEKONOMI, vol.31, no.58, pp.179-190, 2023 (ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 31 Issue: 58
  • Publication Date: 2023
  • Doi Number: 10.17233/sosyoekonomi.2023.04.09
  • Journal Name: SOSYOEKONOMI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, TR DİZİN (ULAKBİM)
  • Page Numbers: pp.179-190
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

This study examines the shadow economy and corruption relationship throughout seven Economic Cooperation Organization (ECO) countries. Utilising shadow economy data provided by Medina and Schneider (2017; 2019) and Transparency International's corruption perception indicator between 2000-2017, regression analysis suggests that there is a statistically significant relationship between corruption and shadow economy, and additionally, that Soviet heritage plays a role in the determination of this relationship. Results show that for post-Soviet ECO nations, the relationship is complimentary, while for 'Other' ECO nations, the relationship is substitutive.