Does (Islamic) stock market mitigate shadow economy in Malaysia?
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In the present study we estimate the size of the shadow economy for Malaysia using the modified-cash-deposit-ratio (MCDR) approach. Subsequently, we relate shadow economy with its determinants such as national income, government spending, stock market development, misery index and tax burden. Our emphasis in this study is on the role of Islamic stock market in mitigating shadow economy in Malaysia. We consider Bursa Malaysia as an Islamic stock market as more than 70% of the companies listed in the Bursa Malaysia stock indices are Sharia-compliant. Our results clearly suggest that there is a role for Islamic stock market in reducing the size of shadow economy in Malaysia.
Shadow economy , Financial development , Islamic stock market , Malaysia
Abdul Hamid, B., Habibullah, M. S., Din, B. H., & Saari, M. Y. (2022). Does (Islamic) stock market mitigate shadow economy in Malaysia? International Journal of Economics and Finance Studies, 14(2), 355-380.