Institutional quality and the shadow economy in Africa: Effect and transmission channels

Tii Tasheh Fonsoh et al.

Transnational Corporations Review2025https://doi.org/10.1016/j.tncr.2025.200113article
AJG 1ABDC C
Weight
0.37

What the paper says

The present work investigates the effect of institutional quality on Africa's underground economy, as well as the mechanisms that modulate this effect. Considering cross-sectional dependency between panels, this study considers data of 41 African countries from the period 1996 to 2017 and the system generalized method of moment is used. The results of this investigation propose that institutional quality has a considerable detrimental impact on Africa's underground economy. The interactive effect findings reveal that modulating institutional quality through natural resource rents and trade has an adverse net effect on the size of Africa's shadow economy up to the threshold values of 37.14843 for natural resource rents (% GDP) and 40.55319 for trade (% GDP), after which the negative effect is nullified. Policy implications are discussed.

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https://doi.org/https://doi.org/10.1016/j.tncr.2025.200113

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@article{tii2025,
  title        = {{Institutional quality and the shadow economy in Africa: Effect and transmission channels}},
  author       = {Tii Tasheh Fonsoh et al.},
  journal      = {Transnational Corporations Review},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1016/j.tncr.2025.200113},
}

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Institutional quality and the shadow economy in Africa: Effect and transmission channels

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.