The Impact of Knowledge Components on the Shadow Economy in Selected Countries

Document Type : Original Article

Authors

1 Department of Economics, Mi.C., Islamic Azad University, Miyaneh, Iran

2 Professor, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

10.48308/jem.2025.239929.2004

Abstract

The main objective of this paper is to investigate the impact of knowledge components on the shadow economy of selected developed and developing countries using the PSTR regression model during the period 2008-2023. Based on the results, the impact of knowledge components on the shadow economy of developing countries is asymmetric. The results of the analysis indicate that there is a nonlinear relationship between knowledge components and the shadow economy of selected countries. In the high and low marginal regimes, there is a negative and significant relationship between economic incentives and the institutional regime. The impact of other knowledge components on the shadow economy is different in both marginal regimes. Thus, there is a non-significant relationship between the innovation system and the shadow economy in the low marginal regime, but there is a significant negative relationship in the high marginal regime. The impact of education and human resource development on the shadow economy. In the low marginal regime, it is negative and significant, but in the high marginal regime, it has a positive and significant effect on the shadow economy. Also, the impact of information and communication technology infrastructure on the shadow economy in the low marginal regime; Negative and significant effect but in the high limit regime; has a non-significant effect on the shadow economy. Economic growth and natural resource rent on the shadow economy in the low limit regime; has a positive and significant effect on the shadow economy .

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