Advanced Search
MyIDEAS: Login

The Unofficial Economy in Croatia : Causes, Size and Consequences

Contents:

Author Info

  • Ivo Bicanic

    (University of Zagreb)

  • Katarina Ott

    (Institute of Public Finance)

Abstract

In all economies, there is a part which is not included in the official economy, in other words, economic activities not included in the official statistics. The size of the unofficial economy in the Republic of Croatia was probably at least 25% of GDP in 1995. Two periods can be clearly distinguished between 1990 and 1996. During the first period up to 1993, all available data indicate that the size of the unofficial economy increased in relation to GDP. The second period began in 1994 and it is not possible to make a final judgement because despite the fact that a majority of indicators suggest a fall, some particularly important indicators point to an increase in the size of the unofficial economy. The calculated size of the unofficial economy in relation to GDP (25%) is large and will probably remain so in the foreseeable future because the inherited tradition, the transition with intensified sectoral and institutional restructuring, the large state influence in the economy, especially in privatisation along with the tax pressure, the recovery of growth and new enterprise, only support the unofficial economy. Economic policy aimed at suppressing the unofficial economy must: 1) reduce taxes and customs duties (to the extent permitted by the state budget); 2) selectively reduce regulation; 3) reduce the role of the public sector and the presence of the state in the economy while liberalising the economy; 4) better estimate the size of the unofficial economy within the overall economy and in individual sectors.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ijf.hr/OPS/3.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute of Public Finance in its series Occasional paper series with number 03.

as in new window
Length: 45 pages
Date of creation: Nov 1997
Date of revision:
Publication status: published in the journal “Financijska praksa”, Vol. 21, No. 1-2, June 1997
Handle: RePEc:ipf:occasi:3

Contact details of provider:
Postal: Smiciklasova 21, 10000 Zagreb
Email:
Web page: http://www.ijf.hr/
More information through EDIRC

Related research

Keywords: informal sector;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Ericson, Richard E., 1984. "The "second economy" and resource allocation under central planning," Journal of Comparative Economics, Elsevier, vol. 8(1), pages 1-24, March.
  2. Smith, Stephen, 1989. "European perspectives on the shadow economy," European Economic Review, Elsevier, vol. 33(2-3), pages 589-596, March.
  3. Joel Slemrod, 1991. "Optimal Taxation and Optimal Tax Systems," NBER Working Papers 3038, National Bureau of Economic Research, Inc.
  4. Graafland, J J, 1990. "Tax Policies and Interaction between Hidden and Official Economy," Public Finance = Finances publiques, , vol. 45(1), pages 75-89.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Aleksandar Stulhofer & Ivan Rimac, 2002. "Opportunism, Institutions and Moral Costs: the Socio-Cultural Dimension of the Underground Economy in Croatia 1995-1999," Occasional paper series 14, Institute of Public Finance.
  2. Katarina Ott, 2002. "The Underground Economy in Croatia," Occasional paper series 12, Institute of Public Finance.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ipf:occasi:3. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martina Fabris).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.