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

Florentina XHELILI Krasniqi () and Rahmije MUSTAFA Topxhiu ()
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Florentina XHELILI Krasniqi: Faculty of Economics, University of Prishtina, Kosovo
Rahmije MUSTAFA Topxhiu: Faculty of Economics, University of Prishtina, Kosovo

Journal of Knowledge Management, Economics and Information Technology, 2012, vol. 2, issue 2, 12

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.

Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:spp:jkmeit:1260

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