Independent Variable

(Causal Variables)

R Square “Percentage of Explained Variation”

Effect on Shadow Economy

Hypothesis

Result

Entrepreneurial Ecosystem

0.851

85.1%

H8

Supported

Unemployment

0.574

57.4%

H4

Supported

Size of Agriculture Sector

0.392

39.2%

H6

Supported

Total Tax/GDP

0.323

32.3%

H1

Supported

Self-Employment Rate

0.203

20.3%

H5

Supported

Fairness of Income Distribution

0.145

14.5%

H7

Supported

Corruption/Quality of Institution

0.111

11.1%

H3

Supported

Intensity of Regulation

0.098

9.8%

H2

Supported