Mitigating shadow economy through dual banking sector development in Malaysia
Theory argues that as long as the shadow economy is of sufficient size, the leakage or loss of tax revenue through tax evasion will also be substantial. In this chapter, we provide new estimates of the size of the shadow economy in Malaysia for the period 1971–2013. Further, we relate the shadow eco...
| Main Authors: | , , , |
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| Format: | Book Section |
| Language: | English |
| Published: |
Palgrave Macmillan
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/63787/ http://psasir.upm.edu.my/id/eprint/63787/1/Mitigating%20shadow%20economy%20through%20dual%20banking%20sector%20development%20in%20Malaysia.pdf |
| _version_ | 1848854862034370560 |
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| author | Habibullah, Muzafar Shah Abdul Hamid, Baharom Din, Badariah Furuoka, Fumitaka |
| author_facet | Habibullah, Muzafar Shah Abdul Hamid, Baharom Din, Badariah Furuoka, Fumitaka |
| author_sort | Habibullah, Muzafar Shah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Theory argues that as long as the shadow economy is of sufficient size, the leakage or loss of tax revenue through tax evasion will also be substantial. In this chapter, we provide new estimates of the size of the shadow economy in Malaysia for the period 1971–2013. Further, we relate the shadow economy to its determinants as measured by the misery index. This chapter reveals that the relationship between the shadow economy and financial development in Malaysia exhibits an inverted U-shaped curve. The chapter concludes that the Malaysian government should embark on programs that can reduce the size of the shadow economy, relying on its dual banking system of Islamic and conventional banks. |
| first_indexed | 2025-11-15T11:16:36Z |
| format | Book Section |
| id | upm-63787 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:16:36Z |
| publishDate | 2017 |
| publisher | Palgrave Macmillan |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-637872019-10-24T07:21:38Z http://psasir.upm.edu.my/id/eprint/63787/ Mitigating shadow economy through dual banking sector development in Malaysia Habibullah, Muzafar Shah Abdul Hamid, Baharom Din, Badariah Furuoka, Fumitaka Theory argues that as long as the shadow economy is of sufficient size, the leakage or loss of tax revenue through tax evasion will also be substantial. In this chapter, we provide new estimates of the size of the shadow economy in Malaysia for the period 1971–2013. Further, we relate the shadow economy to its determinants as measured by the misery index. This chapter reveals that the relationship between the shadow economy and financial development in Malaysia exhibits an inverted U-shaped curve. The chapter concludes that the Malaysian government should embark on programs that can reduce the size of the shadow economy, relying on its dual banking system of Islamic and conventional banks. Palgrave Macmillan 2017 Book Section PeerReviewed text en http://psasir.upm.edu.my/id/eprint/63787/1/Mitigating%20shadow%20economy%20through%20dual%20banking%20sector%20development%20in%20Malaysia.pdf Habibullah, Muzafar Shah and Abdul Hamid, Baharom and Din, Badariah and Furuoka, Fumitaka (2017) Mitigating shadow economy through dual banking sector development in Malaysia. In: Islamic Economies: Stability, Markets and Endowments. Palgrave CIBFR Studies in Islamic Finance . Palgrave Macmillan, Cham, Switzerland, pp. 41-62. ISBN 9783319479361 10.1007/978-3-319-47937-8_4 |
| spellingShingle | Habibullah, Muzafar Shah Abdul Hamid, Baharom Din, Badariah Furuoka, Fumitaka Mitigating shadow economy through dual banking sector development in Malaysia |
| title | Mitigating shadow economy through dual banking sector development in Malaysia |
| title_full | Mitigating shadow economy through dual banking sector development in Malaysia |
| title_fullStr | Mitigating shadow economy through dual banking sector development in Malaysia |
| title_full_unstemmed | Mitigating shadow economy through dual banking sector development in Malaysia |
| title_short | Mitigating shadow economy through dual banking sector development in Malaysia |
| title_sort | mitigating shadow economy through dual banking sector development in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/63787/ http://psasir.upm.edu.my/id/eprint/63787/ http://psasir.upm.edu.my/id/eprint/63787/1/Mitigating%20shadow%20economy%20through%20dual%20banking%20sector%20development%20in%20Malaysia.pdf |