Informal Economy, Inflation and Growth in Turkey

Informal economy is the economic and financial transactions that are not included in official records or legal documents, cannot be controlled by legal regulations, and therefore are not included in national calculations. The aim of the first section is to clarify the concept of the informal economy. In this context, a conceptual framework has been tried to be presented in the relevant section. In the second part, the basic features of the informal economy are examined and the reasons that lead to it are discussed. In addition, the consequences of the informal economy are also examined. In Chapter 3, the connection between the informal economy and the basic macroeconomic indicators in the Turkish economy is discussed. The study deals with the discussions on the size of the informal economy in Turkey together. Thus, the opportunity to evaluate the results of the studies in the literature has emerged. In the third chapter, the problems created by the informal economy and policy suggestions to be implemented against it are also made. Measurement difficulties regarding the informal economy have resulted in a lack of publications in proportion to the importance of the subject. There are not enough studies in the literature that draw attention to the importance of the subject. In this context, it is aimed to contribute to the literature with this study. Finally, policy recommendations have been made to policymakers to alleviate the problems caused by the informal economy.