Measuring Underground Economy of Bangladesh: Transaction Approach

  • A. F. M. Ataur Rahman Associate Professor, Department of Economics, North South University (NSU), BANGLADESH
  • Afsana Rahman Khan Department of Economics, North South University (NSU), BANGLADESH
Keywords: Underground Economy, Transaction Approach, Bangladesh

Abstract

Underground economy is a malaise for the government that restricts its fiscal ability and infuses confusion in development planning. For a developing country like Bangladesh, which thrives for prospering this can hurt disproportionately. Therefore, measuring underground economy is important for Bangladesh. In this study, using data of 1980-2010 we have used transaction method proposed by Feige (1979) to calculate its extent in Bangladesh. We have found that unreported economy accounts a substantial portion of official GDP. Its growth rate was high positive in some years and in some other years it experienced a stagnant trend. Although few but in some years it declined relative to GDP as well.

GEL Classification Code: A31; O40

 

Handle: http://hdl.handle.net/20.500.11903/gdeb.v1n2.1

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Published
2012-12-17
How to Cite
Rahman, A. F. M. A. and Khan, A. R. (2012) “Measuring Underground Economy of Bangladesh: Transaction Approach”, Global Disclosure of Economics and Business, 1(2), pp. 74-82. Available at: http://i-proclaim.my/archive/index.php/gdeb/article/view/127 (Accessed: 14October2019).
Section
Articles