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Impact Of Underground Economy Upon The Romanian Economy

Author

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  • Sorin-Daniel MANOLE

    (“Constantin Brâncoveanu” University, Romania)

Abstract

The present article shows estimates the size of underground economy in Romania during 1999 - 2012 (as a percentage of real GDP), carried out by Schneider by means of the MIMIC method. Moreover, the data on 2011 referring to this phenomenon are compared to the data on 30 different states in Europe. In addition, in order to emphasize the difficulty of the scientific endeavour of evaluating the size of the underground economy and especially to see what the endeavour is basically about, the MIMIC methodology has been shaped which is the procedure most frequently used by Schneider in his latest surveys. Using a linear regression model in the end of this article helps accomplish a prognosis of the size of Romania’s underground economy in 2013.

Suggested Citation

  • Sorin-Daniel MANOLE, 2012. "Impact Of Underground Economy Upon The Romanian Economy," Management Strategies Journal, Constantin Brancoveanu University, vol. 18(4), pages 5-12.
    • Handle: RePEc:brc:journl:v:18:y:2012:i:4:p:5-12
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    References listed on IDEAS

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    1. repec:dau:papers:123456789/7463 is not listed on IDEAS
    2. Feige, Edgar L, 1994. "The Underground Economy and the Currency Enigma," Public Finance = Finances publiques, , vol. 49(Supplemen), pages 119-136.
    3. Albu, Lucian Liviu, 2008. "A Model To Estimate Spatial Distribution Of Informal Economy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(4), pages 111-124, December.
    4. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    5. Jay Pil Choi & Marcel Thum, 2005. "Corruption And The Shadow Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(3), pages 817-836, August.
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    More about this item

    Keywords

    underground economy; fiscality; MIMIC; Schneider;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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