Determinants of the hidden economy in Libya

Abstract

The paper aims to investigate the nature of the relationship between the hidden economy and its theoretical determinants in Libya by using the econometric method, specifically the bounds test approach for Cointegration, based on annual data covering the period 1962-2012. The study concluded existence a long-run Relationship between the size of the hidden economy And its determinants in Libya. The most important factors are unemployment, taxes, complications and government procedures.