The relationship between the shadow economy and the elements of competitiveness in developing oil countries

The purpose of this research is the analysis of the relationship between the shadow economy and the elements of competitiveness in developing oil countries. The current research is applied in terms of purpose, descriptive-analytical in terms of inference method, and post-event in terms of the overall design of the research. The final sample used for this study is the data of 72 developing oil countries during the years 2005-2020. The data was analyzed by applying Eviews software through vector panel autoregressive distributed lag model (PARDL) and the Markov switching method. The results showed that in the short term there is a significant relationship between the shadow economy and the input-oriented elements of the developing oil countries, but the significant relationship between the shadow economy and the efficiency-oriented and creativity-oriented elements of the competitiveness of the developing oil countries was not confirmed. Also, in the long term, there is a significant relationship between the shadow economy and the efficiency-oriented and input-oriented elements of the developing oil countries, but the significant relationship between the shadow economy and the creativity-oriented elements of the competitiveness of the developing oil countries was not confirmed. In addition, in the long term, there is a significant relationship between the shadow economy and the index of ease of doing business in developing oil countries, but in the short term, there is a significant relationship between the index of ease of doing business and the shadow economy of oil countries