The Role of the Hidden Economics in Sustainable Development An Analytical Study

Abstract

The hidden economy contributes in varying proportions to the size of the economies of developed and developing countries alike, depending on the reasons for its different appearance between one country and another as a result of the difference in the policies followed in dealing with many variables, in addition to the effects resulting from it, especially in sustainable development as a competitor to the formal economy. The results of analyzing the size of the hidden economy of the study sample according to different levels of income for the period (1991-2015) indicate that the growth rates in the size of the hidden economy in high-income countries are relatively lower compared to the growth rates in countries with other levels of income. Moreover, it is noted that most countries that have a low rate of hidden economic growth have been able to achieve high points in the sustainable development goals. Accordingly, there may be an inverse relationship between the rate of growth in the size of the hidden economy and the SDG index.