ilam university
Abstract: (430 Views)
One of the main backgrounds of globalization is economic liberalization, but in addition to advantages, economic liberalization also comes with disadvantages, among them, especially considering the current conditions of Iran's economy, is the increase in the size of the shadow economy. In the current study, the effect of economic liberalization policies on the shadow economy is investigated using the TVP-FAVAR model to investigate the shock effect of the studied variables on the shadow economy during the period of 1358-98. For this purpose, at first, the hidden variable of the shadow economy was estimated using important and effective variables on the shadow economy that were considered from other studies, and then the shock effect of selected variables including globalization, government spending, added value of the industry sector, education and labor force participation on the economy. Shadow checked. The results of estimating the shadow economy variable show that the implementation of some economic liberalization policies such as value-added tax and targeted subsidies in the late 80s not only did not decrease the shadow economy, but increased the shadow economy. Also, the effect of the shock of all the studied variables on the shadow economy is increasing especially in the 90s, and among them, the shock of the value-added variables of industry, globalization and education have the greatest effect on the increase of the shadow economy. This case shows the institutional weaknesses and the inappropriateness of the production and industrial structure in Iran, which causes a decrease in production activities in the formal economy and an increase in the motivation of people to participate in the shadow economy. In fact, the incomplete and unfavorable implementation of economic liberalization policies has caused the size of the shadow economy to expand; Therefore, in order to improve the economic conditions and reduce the shadow economy, a fundamental revision should be made in the executive policies in this case.
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