In summary, however, there is at best weak evidence for our a priori hypotheses. Using perceptions based indices of corruption, our results show that there is no robust relationship between corruption and the size of the shadow economy. Employing a index of measured corruption the results show that the size of the shadow economy does not affect corruption at conventional levels of significance. However, employing the shadow economy as dependent variable, corruption and the shadow economy are complements in countries with low income, in line with Hypothesis 1. There is no robust significant relationship in high income countries.