An Ordinary Least Squares Approach Measuring the Impact of Factors Affecting the Underground Economy of Bangladesh and Their Implications in the Context of the Country’s Supply Chain
Author (s)
Abdullah Bin Zafar & Tanvir Ahmed Tuhin
Abstract
The underground economy, also known as the shadow, informal, or unobserved economy, operates beyond government oversight, encompassing legal and illegal activities. Its substantial size, estimated at 36.4% of Asia’s GDP, prompts examination of its determinants and policy implications. This study focuses on Bangladesh, aiming to identify factors influencing the underground economy. Using data from 2000 to 2020, the study employs Ordinary Least Squares analysis with variables including inflation, unemployment, internet users, GDP growth, tax revenue, economic freedom index, and population growth. Findings reveal that the size of underground economy of the country has significant positive relationships with inflation, internet users and tax revenue. Implications for Bangladesh’s supply chain include inflation driving up costs, internet users affecting online commerce, and tax revenue influencing formalization efforts. Policymakers and stakeholders can use these insights to promote transparency and reduce the underground economy’s adverse impacts.
Keywords: Underground Economy of Bangladesh, Unobserved Economy, Ordinary Least Squares, Economic Freedom Index, Supply Chain.
| Title: | An Ordinary Least Squares Approach Measuring the Impact of Factors Affecting the Underground Economy of Bangladesh and Their Implications in the Context of the Country’s Supply Chain |
|---|---|
| Author: | Abdullah Bin Zafar & Tanvir Ahmed Tuhin |
| Journal Name: | International Journal of Science and Business |
| Website: | ijsab.com |
| ISSN: | ISSN 2520-4750 (Online), ISSN 2521-3040 (Print) |
| DOI: | https://doi.org/10.58970/IJSB.2337 |
| Media: | Online & Print |
| Volume: | 34 |
| Issue: | 1 |
| Issue publication (Year): | 2024 |
| Acceptance Date: | 08/03/2024 |
| Date of Publication: | 16/03/2024 |
| PDF URL: | https://ijsab.com/wp-content/uploads/2337.pdf |
| Free download: | Available |
| Page: | 92-107 |
| First Page: | 92 |
| Last Page: | 107 |
| Paper Type: | Research paper |
| Current Status: | Published |
Cite This Article:
Abdullah Bin Zafar & Tanvir Ahmed Tuhin (2024). An Ordinary Least Squares Approach Measuring the Impact of Factors Affecting the Underground Economy of Bangladesh and Their Implications in the Context of the Country’s Supply Chain. International Journal of Science and Business, 34(1), 92-107. DOI: https://doi.org/10.58970/IJSB.2337
Retrieved from https://ijsab.com/wp-content/uploads/2337.pdf
About Author (s)
Abdullah Bin Zafar (Corresponding author), Department of International Business, University of Dhaka, Dhaka, Bangladesh.
Tanvir Ahmed Tuhin, Department of International Business, University of Dhaka, Dhaka, Bangladesh.
DOI: https://doi.org/10.58970/IJSB.2337