The Underground Economy : Estimation, and Economic and Policy Implications: The Case of Pakistan

Author/Editor:

Ghiath Shabsigh

Publication Date:

October 1, 1995

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper estimates the size of the underground economy in Pakistan and analyzes its impact on Government fiscal position and the allocation of economic resources in the national economy. The results suggest that there is a mutual dependency between the size of the underground economy and fiscal deficits, and show a leakage from the national income-expenditure cycle in the formal economy to the underground economy via private investments. Finally, the paper proposes long- and short-run policies to reduce the size of the underground economy.

Series:

Working Paper No. 95/101

Subject:

English

Publication Date:

October 1, 1995

ISBN/ISSN:

9781451852479/1018-5941

Stock No:

WPIEA1011995

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

23

Please address any questions about this title to publications@imf.org