01726cas a2200253 a 4500 AALejournalIMF019094 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484399613 1018-5941 BD-DhAAL BD-DhAAL Frank Wu, Dong. Nonlinearity Between the Shadow Economy and Level of Development / Dong Frank Wu, Friedrich Schneider. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper is the first attempt to directly explore the long-run nonlinear relationship between the shadow economy and level of development. Using a dataset of 158 countries over the period from 1996 to 2015, our results reveal a robust U-shaped relationship between the shadow economy size and GDP per capita. Our results imply that the shadow economy tends to increase when economic development surpasses a given threshold or at least does not disappear. Our findings suggest that special attention should be given to the country's level of development when designing policies to tackle issues related to the shadow economy. Mode of access: Internet Schneider, Friedrich. IMF Working Papers; Working Paper ; No. 2019/048 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/048/001.2019.issue-048-en.xml IMF e-Library