A study on shadow economy, its determinants and its evaluation procedures

Abstract

Even though there a lot of research done on Shadow economy, the definition of the same still needs a lot of clarity. Shadow economy are alternatively known by different names like hidden, grey or black economy or sometimes informal sector economy. In a broad sense, shadow economy includes the part of a country’s economy which is unaccounted for, and falls outside the country’s regulations hidden from official authorities for various reasons. Common perception is that the shadow economy comprises of the money coming from illegal activities. This is only partially true. Shadow economy consists of many other aspects apart from illegal activities.