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Estimating the Size of the Shadow Economy in Nine MENA Countries during the Period 2000 to 2017 Using the MIMIC Model

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Document pages: 16 pages

Abstract: Shadow economy exists in many countries. The unknown shadow economy may interrupt several economic indicators and may result in deviation from the planned and forecasted economic outcomes. The research estimates the size of the shadow economy in Egypt and eight developing MENA countries during the period 2000 to 2017 using the MIMIC approach. The research follows the descriptive explanatory approach based on the quantitative method. The results reveal a significant relation between each of Total Tax GDP, Intensity of Regulation, and Corruption Quality of public institutions, Unemployment Rate, Self-employment Rate, and Size of the Agricultural Sector, Fairness of Income Distribution, Entrepreneurial Ecosystem, Labor Force Participation Rate and the Size of the Shadow Economy.

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