Vol 4, No 1 (2016)
Does Tanzi Model Fit the Sudan Economy?
Khalafalla Ahmed Mohamed Arabi
Abstract
This paper aims to provide an empirical evidence from the Sudan economy for estimating the size of the informal sector. Tanzi model has been replicated with some modifications by including real growth rate of the economy as exogenous variable, excluding interest rate because dealing with interest has been abolished since 1983, and replacing the ratio of personal income tax by total tax to GDP ratio. Error correction model was estimated via EViews 8. Results showed that the modified Tanzi model fits to Sudan economy, and found that the average size of the underground economy is 20.2% of GDP mainly derived from bank services of 16.5%.
Full text: 
PDF
Keywords
Underground economy; Tanzi model; Fitness; Tax burden.
Publication information
Volume 4, Issue 1
Year of Publication: 2016
ISSN: 1857 - 8721
Publisher: EDNOTERA
How to cite
Mohamed Arabi K. A.: Does Tanzi Model Fit the Sudan Economy?. Journal of Applied Economics and Business, Vol 4, No. 1, 44-59. (2016)