European Proceedings Logo

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.
< Back to article