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Ratio of shadow economy


Japan > Singapore > China > Vietnam > Korea > Myanmar
A shadow economy is all economic activities which are hidden from official authorities for monetary, regulatory, and institutional reasons. Monetary reasons include avoiding paying taxes and all social security contributions, while regulatory reasons include avoiding governmental bureaucracy or the burden of regulatory frameworks, and institutional reasons include corruption law, quality of political institutions and weak rule of law.

The ratio in Korea was 29.13% in 1991, falling below 20%in 2015. Among Asian countries, the ratio was notably low in Japan at 8.19%. China also had a ratio lower than Korea at 12.11 percent, and Vietnam marked 14.78 percent. Myanmar had shadow economies take over 50% of their GDP.