Shadow economy and financial development: evidence from developed and developing countries
Shadow economy is a serious issue in every nation’s economy in the world. Shadow economy is an unregulated economic activity such as corruption, tax evasion and money laundering that can hinders the development of financial sector of a country. Hence, the purpose of this paper is to study the impact...
| Main Authors: | , , , , |
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| Format: | Final Year Project / Dissertation / Thesis |
| Published: |
2021
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| Online Access: | http://eprints.utar.edu.my/4359/ http://eprints.utar.edu.my/4359/1/fyp_FN_2021_CZK%2D1704829.pdf |
| _version_ | 1848886134861463552 |
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| author | Chan, Zi Kang Chong, Wen Rui Chong, Xian Ming Mak, Chi Ling Tan, Chee Sheun |
| author_facet | Chan, Zi Kang Chong, Wen Rui Chong, Xian Ming Mak, Chi Ling Tan, Chee Sheun |
| author_sort | Chan, Zi Kang |
| building | UTAR Institutional Repository |
| collection | Online Access |
| description | Shadow economy is a serious issue in every nation’s economy in the world. Shadow economy is an unregulated economic activity such as corruption, tax evasion and money laundering that can hinders the development of financial sector of a country. Hence, the purpose of this paper is to study the impact of shadow economy on financial development for 33 developed countries and 124 developing countries over the period of 1991 - 2017 with Two-Step Robust System Generalized Method of Moments (GMM) dynamic panel estimators. There are control variables such as natural resources, trade openness, technological innovation and human capital were used in study. The results summarized that shadow economy has a negative relationship on financial development in both developed countries and developing countries. Natural resources showed insignificant connection on financial development for developed and developing countries, while trade openness and technological innovation showed significant connection on financial development for developed and developing countries. For human capital, it showed a positive relationship with financial development in developed countries. However, it showed a negative relationship with financial development on developing countries. |
| first_indexed | 2025-11-15T19:33:40Z |
| format | Final Year Project / Dissertation / Thesis |
| id | utar-4359 |
| institution | Universiti Tunku Abdul Rahman |
| institution_category | Local University |
| last_indexed | 2025-11-15T19:33:40Z |
| publishDate | 2021 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | utar-43592022-12-29T07:21:24Z Shadow economy and financial development: evidence from developed and developing countries Chan, Zi Kang Chong, Wen Rui Chong, Xian Ming Mak, Chi Ling Tan, Chee Sheun HG Finance Shadow economy is a serious issue in every nation’s economy in the world. Shadow economy is an unregulated economic activity such as corruption, tax evasion and money laundering that can hinders the development of financial sector of a country. Hence, the purpose of this paper is to study the impact of shadow economy on financial development for 33 developed countries and 124 developing countries over the period of 1991 - 2017 with Two-Step Robust System Generalized Method of Moments (GMM) dynamic panel estimators. There are control variables such as natural resources, trade openness, technological innovation and human capital were used in study. The results summarized that shadow economy has a negative relationship on financial development in both developed countries and developing countries. Natural resources showed insignificant connection on financial development for developed and developing countries, while trade openness and technological innovation showed significant connection on financial development for developed and developing countries. For human capital, it showed a positive relationship with financial development in developed countries. However, it showed a negative relationship with financial development on developing countries. 2021-04-05 Final Year Project / Dissertation / Thesis NonPeerReviewed application/pdf http://eprints.utar.edu.my/4359/1/fyp_FN_2021_CZK%2D1704829.pdf Chan, Zi Kang and Chong, Wen Rui and Chong, Xian Ming and Mak, Chi Ling and Tan, Chee Sheun (2021) Shadow economy and financial development: evidence from developed and developing countries. Final Year Project, UTAR. http://eprints.utar.edu.my/4359/ |
| spellingShingle | HG Finance Chan, Zi Kang Chong, Wen Rui Chong, Xian Ming Mak, Chi Ling Tan, Chee Sheun Shadow economy and financial development: evidence from developed and developing countries |
| title | Shadow economy and financial development: evidence from developed and developing countries |
| title_full | Shadow economy and financial development: evidence from developed and developing countries |
| title_fullStr | Shadow economy and financial development: evidence from developed and developing countries |
| title_full_unstemmed | Shadow economy and financial development: evidence from developed and developing countries |
| title_short | Shadow economy and financial development: evidence from developed and developing countries |
| title_sort | shadow economy and financial development: evidence from developed and developing countries |
| topic | HG Finance |
| url | http://eprints.utar.edu.my/4359/ http://eprints.utar.edu.my/4359/1/fyp_FN_2021_CZK%2D1704829.pdf |