arbiter
JournalsAccount

Entrepreneurship, Local Governance Quality, and Shadow Economy: Insights From an Emerging Economy

Quynh Le Trinh & Cong Minh Huynh

Bulletin of Economic Research2026https://doi.org/10.1111/boer.70055article
AJG 2ABDC B
Weight
0.50

Abstract

This paper investigates the impact of entrepreneurship on local governance quality as well as the impact of local governance quality and entrepreneurship on the shadow economy for a panel dataset of 63 provinces in Vietnam over the period of 2006–2021. Results point out the important roles of entrepreneurship and local governance in reducing the shadow economy. Remarkably, entrepreneurship reduces the shadow economy not only directly but also indirectly through the improvement of local governance. More interestingly, the indirect effect is even stronger than the direct effect. We also acknowledge and test the reverse path—better governance fosters entrepreneurship—and document heterogeneity across the six governance dimensions, with corruption control and administrative procedures exerting the strongest effects on the shadow economy. These findings highlight the importance of fostering entrepreneurial activities and strengthening governance structures at the local level to create a more transparent and formal economic environment.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1111/boer.70055

Or copy a formatted citation

@article{quynh2026,
  title        = {{Entrepreneurship, Local Governance Quality, and Shadow Economy: Insights From an Emerging Economy}},
  author       = {Quynh Le Trinh & Cong Minh Huynh},
  journal      = {Bulletin of Economic Research},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/boer.70055},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Entrepreneurship, Local Governance Quality, and Shadow Economy: Insights From an Emerging Economy

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

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

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
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.