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Economic Impacts of Shadow Economy

Author

Listed:
  • Ömer Faruk Öztürk

    (Usak University)

  • Aysun Karamıklı

    (Usak University)

Abstract

The shadow economy can be documented by the government, documented by statutory content, officially made without registration or defined in the economic activities which are legal or illegal, which cannot be fully defined by the methods and which cannot be accounted for according to national income accounts. The informal economy is a common problem for both developed and developing economies. The determination of economic and social impacts of shadow economy gained importance together with the increases in the unregistered activities over time. This study researched the economic impacts of shadow economy and revealed that the shadow economy had impact on the economic growth, taxes, income distribution and corruption.

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Handle: RePEc:bau:ijaefs:v:4:y:2019:i:1:id:106
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