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Economics and “underground” economy theory

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  • Cristina VOICU

    (Bucharest Academy of Economic Studies)

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    Abstract

    Following examination of the theory underlying "underground" economy study I concluded that a good knowledge of the economic thought history is a must for any paper of economic analysis. Subject is sufficiently dramatic by its nature; so I consider it is necessary to bring the scientific perspective. In addition, "underground" economy is an unavoidable ingredient of any economy, the most profitable component of the economy being the "underground" one. Lack of consideration for this component can lead to severe shortfalls of economic analysis leading to the adoption of unrealistic strategies. I support since the beginning of this paper that not the quantitative side will be essentially concerned but epistemic logic. In this paper I propose to elaborate a theory that will mark the right of “underground" economy to exist as a sub-branch of economics. The main argument supporting the need for such an analysis consists of time evidence that shows that "underground" economy is a source of development, subsistence and even escape from the periphery zone for some underdeveloped economies.

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    Bibliographic Info

    Article provided by Asociatia Generala a Economistilor din Romania - AGER in its journal Theoretical and Applied Economics.

    Volume (Year): XVIII(2012) (2012)
    Issue (Month): 7(572) (July)
    Pages: 71-84

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    Handle: RePEc:agr:journl:v:7(572):y:2012:i:7(572):p:71-84

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    Keywords: “underground" economy; economics; economic development; globalization.;

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