000			01426pab a2200169 454500
008			180718b2004 xxu||||| |||| 00| 0 eng d
100			_aLin, Wen Rong
245			_aA note on investigating causal link between the hidden economy and real GDP in Taiwan, 1962-2001
260			_c2004
300			_ap.545-54.
362			_aJan
520			_aIn this study, we first re-estimate the size of the hidden economy based on Tanzi's (1983) currency-ratio approach for the first time in the Taiwan context covering such a long time period (1962-2001); second, we investigate time series properties of the estimated real hidden economy and real GDP, and third, we test the hypothesis of a long-run relationship and causal link between the estimated hidden economy and real GDP over this sample period. The test result indicates that these two variables are cointegrated with one vector indicating a long-run equilibrium relationship exists between-these two variables. Granger-causality test result based on vector error-correction model (VECM) suggests a bi-directional causality (feedback) between these two variables. This result poses a dilemma for Taiwan policy makers who wish to stimulate economic growth and also minimize the size of the "tax gap" in Taiwan over this sample period. - Reproduced.
650			_aEconomic growth - Raiwan
650			_aEconomic growth
773			_aIndian Journal of Economics
909			_a59875
999			_c59875 _d59875