Currency demand approach and underground economy in Qatar

Jauhari B Dahalan (1Universiti Kuala Lumpur Business School)
Awadh Ahmed Mohammed Al-Gamal (School of Economics,Finance and Banking, University Utara Malaysia)

Proceedings of Annual International Conference Syiah Kuala University - Social Sciences Chapter
Vol 7 (2017): 7th AIC in conjuction ICMR 2017 Universitas Syiah Kuala October 2017

The growth of the underground economy has become a serious challenge and concern to the official economy of many countries. Based on the adjusted currency demand function this paper estimates the magnitude of the underground economy behind tax evasion in Qatar over the period of 1980-2010. The results show that the average of the underground economy in Qatar constitutes 17.03% of the official GDP. While, the average of the tax evasion as a percent of the total non-oil tax revenues estimated at 16.50% and at 2.12% of the official GDP respectively.