Research Topics


The U4 Blog

Learning & events

About Us

U4 Helpdesk Answer

Petty corruption and shadow economies

In addition to imposing a heavy financial burden on individuals, especially the poor, petty corruption can facilitate illicit activities such as smuggling and trafficking and ultimately foster the development of informal activities and shadow economy. Research indicates that the size of the shadow economy is largely determined by factors related to governance, while corruption is consistently associated with more unofficial activity. Further findings confirm that institutional quality reduces both the shadow economy and corruption.
10 November 2005

Cite this publication

(2005) Petty corruption and shadow economies. Bergen: U4 Anti-Corruption Resource Centre, Chr. Michelsen Institute (U4 Helpdesk Answer )


All views in this text are the author(s)’, and may differ from the U4 partner agencies’ policies.

This work is licenced under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International licence (CC BY-NC-ND 4.0)