The Analysis of the Function Relationship Between Political Stability and the Percentage of Hidden Economy in a Chosen Sample From the Countries of the World.

Abstract

Abstract : The present research estimates the impact of political stability level on the percentage of hidden economy contribution in the total local output. When using Pearson correlation coefficient, we have found that there is a negative linear correlation relation between the level of political stability and the percentage of hidden economy. At the analysis of variance for the percentage of hidden economy according to the categories of political stability levels which have been classified into three categories, the political stability level index in the first category was between (0-30 , for the second category 30.1-60,where as the third category which is the most stable it was between 60.1- and ascending ). It has been clarified that there are very high significant differences between the categories . When using ( Duncan ) test for post variance analysis, it has been confirmed that there are significant differences in the percentages of hidden economy according to the categories of political stability levels. When using the simple linear and non-linear Regression , we have found that if the level of political stability increases with one point then the percentage of hidden economy will decrease with 0.01 point which and this is a significant decrease . All this is conducted in a study of a sample consisting of 40 countries for the year 2010.