Corruption control, shadow economy and income inequality: Evidence from Asia

Developing countries often suffer from high corruption, income inequality and poor institutional arrangements that give rise to large shadow economies. Earlier evidence shows economies moderate the negative effects of corruption on in highly unequal South American countries. For Asia, we show persistence raises even if control is strong. Supported by static dynamic panel data analyses 21 Asia between 1995 2015, order combat rising inequality, must be complemented ability translate secondary tertiary school enrolment into industrial and, more importantly, service sector jobs. Countries with low but can reduce committing higher public consumption expenditures. Further, combining greater trade openness lowers except for Asia.