The Correlation between Shadow Economies and Economic Strength in South America

Aug 24, 2017
Scatter plot of shadow economies and GDP

In South America, the correlation between economic strength and the strength of the shadow economy is pretty weak.  Every country studied on the continent, excluding Chile, has a shadow economy that takes up at least one-fifth of its overall economy.

The Correlation between Shadow Economies and Economic Strength in North America

Aug 23, 2017
Scatter plot of shadow economies and GDP

In North America, the indirect correlation between economic strength and the strength of the shadow economy is very strong.  The United States and Canada have by far the largest economies and the smallest proportion of underground activity.


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