Institutional Determinants Of Shadow Economy In The Former Soviet Union Countries
Table 3: Robustness check (outliers)
| DepVar: Shadow Economy | IRLS | ||||
| Eq. (6) | Eq. (7) | Eq. (8) | Eq. (9) | Eq. (10) | |
| Government Intervention | 0.169*** | 0.099*** | 0.114*** | 0.098*** | 0.082*** |
| (0.045) | (0.026) | (0.026) | (0.025) | (0.024) | |
| Business Freedom | -0.122*** | -0.075*** | -0.064*** | -0.079*** | -0.073*** |
| (0.036) | (0.020) | (0.020) | (0.019) | (0.019) | |
| Trade Freedom | -0.054 | -0.030 | -0.022 | -0.0260 | -0.022 |
| (0.043) | (0.025) | (0.025) | (0.024) | (0.024) | |
| Fiscal Freedom | -0.098** | - | - | - | - |
| (0.039) | |||||
| Control of Corruption | - | -1.382* | - | - | - |
| (1.189) | |||||
| Government Effectiveness | - | - | -1.787** | - | - |
| (0.827) | |||||
| Regulatory Quality | - | - | - | 0.818 | - |
| (0.953) | |||||
| Rule of Law | - | - | - | - | -3.805*** |
| (0.987) | |||||
| Log(GDP per capita) | -0.207 | -8.791*** | -8.807*** | -9.282*** | -8.396*** |
| (0.496) | (0.884) | (0.894) | (0.930) | (0.850) | |
| Unemployment | 0.168 | 0.325*** | 0.251*** | 0.323*** | 0.200*** |
| (0.104) | (0.074) | (0.074) | (0.072) | (0.072) | |
| Economic Openness | -0.087*** | -0.036*** | -0.039*** | -0.0355*** | -0.046*** |
| (0.014) | (0.007) | (0.007) | (0.007) | (0.007) | |
| Log(Gross capital formation) | -1.384*** | -0.597** | -0.707*** | -0.541** | -0.726*** |
| (0.168) | (0.229) | (0.230) | (0.220) | (0.221) | |
| Constant | 98.81*** | 142.2*** | 143.1*** | 147.3*** | 139.9*** |
| (6.223) | (6.047) | (6.119) | (7.158) | (5.785) | |
| Country Fixed Effects | No | Yes | Yes | Yes | Yes |
| Observations | 154 | 133 | 133 | 133 | 133 |
| R-squared | 0.665 | 0.949 | 0.949 | 0.951 | 0.953 |
| F-statistics | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 |
| Note: Standard errors in parentheses. Significance levels *** p<0.01, ** p<0.05, * p<0.1. The parameter estimates of beta are reported. | |||||