Impact of education and government effectiveness on the shadow economy

Shadow economy activities are a central focus around the world and countries engage in trying to contain these activities through regulations, education, and public services. The attempts to constraint the size of this phenomenon are increasingly and a lot of countries are fighting against the advancement of the informal sector. Therefore, this paper aims to estimate what is the effect of education and government efficiency on the shadow economy and whether these two components are essential in strengthening strategies by states to combat fraudulent activities specific to the underground economy.