Shadow Economy Index for Moldova and Romania

Talis Putnins, Arnis Sauka and Adriana Ana Maria Davidesc
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Arnis Sauka: Centre for Sustainable Business, Stockholm School of Economics in Riga
Adriana Ana Maria Davidesc: Department of Labour Market PoliciesNational Scientific Research Institute for Labour and Social Protection, Bucharest

Published Paper Series from Finance Discipline Group, UTS Business School, University of Technology, Sydney

Abstract: This report presents estimates of the size of the shadow economy in Moldova and Romania during the years 2015–2016. The estimates are based on surveys of entrepreneurs in both countries, following the method of Putninš and Sauka (Journal of Comparative Economics 43:471–490, 2015). The components of the shadow economy captured by this approach include misreported business income, unregistered or hidden employees, and ‘envelope’ wages. Our findings suggest that both Moldova and Romania exhibit high levels of bribery, which is influenced by the number of unregistered companies. The results of this chapter highlight the importance of focusing on different forms of entrepreneurship particularly in transition economies.

Pages: 42 pages
Date: 2019-01-01
New Economics Papers: this item is included in nep-cis, nep-eur, nep-iue and nep-tra
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Published in: Putnins, T. J, Sauka, A. and Davidescu, A. A. M., “Shadow Economy Index for Moldova and Romania”, In: Subsistence Entrepreneurship: The Interplay of Collaborative Innovation, Sustainability and Social Goal, pp. 89-130, Springer 2019

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