Regulatory discretion and the unofficial economy

Article Abstract:

An analysis of the relationship between underground economies and regulatory discretion suggests that the extent of regulatory discretion is a key determinant of underground activity. The study also shows that countries with more regulation tend to have a higher share of the unofficial economy in total GDP, that higher business-perceived tax burdens leads to more unofficial activity and that countries with more corruption tend to have a larger unofficial economy.

Analysis, Political aspects, Political corruption, Industry regulations, Underground economy, Government regulation of business, Trade regulation

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Income distribution in urban China during the period of economic reform and globalization

Article Abstract:

A study was conducted to analyze issues in understanding the influence of the transition in China from central planning to a more market-oriented economic system. The incidence of urban poverty and the consequences of economic reforms on the distribution of incomes in urban areas were examined. Results indicated that the increase in urban inequality between 1988 and 1995 correlated with the inequality in the distribution of most of the major components of income.

China, Economic policy, Economic development, Income distribution

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