The Underground Economy: Estimation, and Economic and Policy Implications: The Case of Pakistan
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. 1995/101
Subject:
Budget planning and preparation Currencies Government debt management Income Money National accounts Private investment Public financial management (PFM)
English
Publication Date:
October 1, 1995
ISBN/ISSN:
9781451852479/1018-5941
Stock No:
WPIEA1011995
Pages:
23
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