Shadow economy and regional development - an argument in favor of fiscal decentralization

Stefan Petranov
Authors registered in the RePEc Author Service: Стефан Петранов

MPRA Paper from University Library of Munich, Germany

Abstract: The article discusses the regional aspects of the shadow economy in Bulgaria. The main factors that generate motivation for shadow practices are considered and it is concluded that they operate mainly at the national level. It follows that measures to limit and prevent this phenomenon should be primarily national. However, the article argues that regional policies can also be used in this regard. A moderate fiscal decentralization can help to increase the tax morality which is one of the most slowly changing and most intractable factors generating motivation for the implementation of shadow practices. It is also argued that fiscal decentralization in Bulgaria has the potential to improve other aspects of the economic system.

Keywords: shadow economy; regional development; regional policies; fiscal decentralization; Bulgaria (search for similar items in EconPapers)
JEL-codes: E26 H7 H71 R1 (search for similar items in EconPapers)
Date: 2021-06-01, Revised 2021-10-15
New Economics Papers: this item is included in nep-iue, nep-mac, nep-tra and nep-ure
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Published in Trakia Journal of Sciences Supl. 1.19(2021): pp. 62-67

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:111264

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