Cultural Implications for the Shadow Economy

Abstract

The purpose of this paper is to discern the correlation among dimensions of national culture and the shadow economy. Correlation analysis and Hofstede’s categorized national culture dimensions were used. Correlation analysis revealed a correlation between the shadow economy and the following: the dimensions of national cultural power distance, uncertainty avoidance, and individualism vs collectivism. There is a slight correlation between the shadow economy and masculinity vs femininity. This is a novel empirical analysis of the shadow economy existing among the dimensions of national culture.  The unexpected findings of high correlation between some national cultural dimensions suggests the need for more research in this area.

DOI: http://dx.doi.org/10.5755/j01.ee.29.1.18069