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The Shadow Economy in Bulgaria During the Period 2006-2019

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  • Stefan Petranov
  • Dimitar Zlatinov
  • Ilia Atanasov

Abstract

The main objective of the article is to obtain an estimate for the size and the trend of the shadow economy in Bulgaria. Based on the monetary approach, we find that the shadow economy in Bulgaria for the period 2006-2019 tends to decline as a ratio to GDP: from 31.7%, it shrinks to 21.1%. This trend could be explained by the country’s accession to the European Union, as this process is associated with the harmonisation of the domestic legislation, stricter procedures, and targeted measures to curb the shadow economy by several successive governments. Despite the declining trend, the share of the shadow economy in the country remains still relatively high. This is an obstacle to its economic and social development and there is a clear need for an in-depth analysis of this phenomenon and further measures to limit it and bring it to a much lower level.

Suggested Citation

  • Stefan Petranov & Dimitar Zlatinov & Ilia Atanasov, 2022. "The Shadow Economy in Bulgaria During the Period 2006-2019," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-18.
    • Handle: RePEc:bas:econst:y:2022:i:5:p:3-18
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    References listed on IDEAS

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    Cited by:

    1. Petranov, Stefan & Georgieva, Liliana & Ivcheva, Radostina, 2022. "Институционалните Условия За Членство В Еврозоната И Защо Пътят Е По-Важен От Неговата Цел [The institutional conditions for eurozone membership and why the path is more important than the destinat," MPRA Paper 115892, University Library of Munich, Germany.
    2. Petar Peshev, 2023. "Estimation of the Value, Distribution and Concentration of Wealth in Bulgaria, 1995-2020," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 104-129.
    3. Stefan Petranov & Ìilena Angelova & Lillyana Georgieva & Radostina Ivcheva & Nino Avreyski, 2023. "Is Tax Morale Homogeneous in Bulgaria?," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 64-87.
    4. Victor Yotzov, 2023. "The Euro and Bulgaria – Fears and Hopes," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-18.

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    More about this item

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • F15 - International Economics - - Trade - - - Economic Integration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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