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New estimate of shadow economy based on the total energy consumption. Evidence from the European Union countries; Achim, Monica Violeta; Postea, Mihaela Maria; Noja, Gratiela Georgiana; Energy economics, 2024-02, Vol. 130, p. 107335, Article 107335

Estimating the shadow economy has become a significant concern for politicians, economists, and social scientists in recent times. Despite various advancements in methodology and empirical shreds of evidence, some areas remain unexplored. This article provides a valuable database on the estimations of the shadow economy in 26 EU countries for the period 2001–2021. We develop an innovative technique for measuring the shadow economy that is distinct from previous methods in the literature since it relies upon a modified version of the physical input approach. Instead of relying solely on electric power consumption, we consider the total final energy consumption, which encompasses all forms of energy utilized in the economy. In addition, advanced econometric modeling is performed through robust fixed effects LSDV model to delve into the credentials of our method. The main findings reveal significant variation in average levels of the shadow economy in the European Union, which range between 9.5% and 40% of the official GDP over the analyzed period. [...] 

Monetary Integration Effects on Foreign Direct Investments in New EU Member States; Velić, Ismar; Cvečić, Igor; Journal of Economic Integration, 2024, 39(1), p. 55-85

This study examines the impact of accession to the Economic and Monetary Union (EMU) on foreign direct investment (FDI) inflows in the 11 New Member States (NMS), during the period 2005-2018. Using panel regression analysis and the gravity model, the influence of macroeconomic indicators on FDI outflows from 21 industrialised countries (including EU and non-European counties, such as Japan and USA) to the NMS is assessed. The empirical results suggest that favourable macroeconomic indicators in the NMS, such as a stable exchange rate, lower inflation, long-term interest rates and EU/EMU membership, are positively correlated with FDI inflows from NMS. Conversely, rising inflation and exchange rate volatility in the NMS are negatively associated with FDI inflows, while inflation in the FDI origin countries is positively correlated with investment in the NMS. The results suggest that joining the EMU has a statistically significant and positive relationship on FDI inflows to the NMS. [...] 

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