Seminar Information:



The Value Added of Underground Activities - Size and Measurement of the Shadow Economies of 110 Countries all over the World

Berlin Lunchtime Meeting


SPEAKER: Friedrich Schneider

WELCOME: Dr Ray Cunningham, Anglo-German Foundation 

CHAIR: Prof. Dr. Bengt-Arne Wickstroem, DIW Berlin and Humboldt University  


Date: 25 June 2003

Location: Max-Liebermann-Haus, Pariser Platz 7, 10117 Berlin


Using various methods estimates about the size of the shadow economy in 110 developing, transition and OECD countries are presented. The average size of the shadow economy (in percent of official GDP) over 1999-2000 in developing countries is 41%, in transition countries 38% and in OECD countries 18.0%. An increasing burden of taxation and social security contributions combined with rising state regulatory activities are the driving forces for the growth and size of the shadow economy (labour force).


Friedrich Schneider is Professor of Economics at Johannes Kepler University of Linz, Austria. His two major research areas are public choice/constitutional economics and shadow economy.