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The Informal Economy in Kosovo: Characteristics, Current Trends and Challenges

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  • Florentina XHELILI KRASNIQI

    (Faculty of Economics, University of Prishtina, Kosovo)

  • Rahmije MUSTAFA TOPXHIU

    (Faculty of Economics, University of Prishtina, Kosovo)

Abstract

The informal economy is present in all countries, but its consequences reflect in different countries with different intensity. Types and scale of informal economic activities reflect the specificities of socio-economic context and the integration of the countries into the wider local-regional economy. The informal economy represents an important potential of labor and incomes, therefore there is a need for better understanding, since on this will depend the direction of the path for safer addressing of this issue. The first part of the paper defines the concept, causes, consequences and ways of measuring the informal economy, so as to gain a clear understanding of the subject matter. Under the existing data limitations, some characteristics and estimates are presented regarding the size of the informal economy in Kosovo, with focus on addressing the problems of transition from informal to formal economy. It is challenging exercise, and further research is needed.

Suggested Citation

  • Florentina XHELILI KRASNIQI & Rahmije MUSTAFA TOPXHIU, 2012. "The Informal Economy in Kosovo: Characteristics, Current Trends and Challenges," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(2), pages 1-12, April.
    • Handle: RePEc:spp:jkmeit:1260
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    References listed on IDEAS

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    1. World Bank, 2010. "Kosovo - Unlocking Growth Potential : Strategies, Policies, Actions - A Country Economic Memorandum," World Bank Publications - Reports 2859, The World Bank Group.
    2. Feige, Edgar L., 1990. "Defining and estimating underground and informal economies: The new institutional economics approach," World Development, Elsevier, vol. 18(7), pages 989-1002, July.
    3. Roxana Gutiérrez-Romero, 2010. "The Dynamics of the Informal Economy," CSAE Working Paper Series 2010-07, Centre for the Study of African Economies, University of Oxford.
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