Economics at your fingertips  

The Spread of the Shadow Economy as a Moral Dilemma?

Dzemydaitė Giedrė () and Savilionytė Ieva
Additional contact information
Dzemydaitė Giedrė: Vilnius University, Lithuania, Russia Department of Economic Policy, Faculty of Economics and Business Administration, Vilnius ,Lithuania
Savilionytė Ieva: Vilnius University, Saulėtekio Ave. 22, LT-10225, Vilnius, Lithuania

Ekonomika (Economics), 2017, vol. 96, issue 3, 44-55

Abstract: The shadow economy remains a significant problem in post-Soviet countries and less economically developed economies. Even though there are a lot of economic and social arguments for the emergence of the shadow economy, it remains the question how much of the shadow economy, as well as an intrinsic willingness to pay taxes, could be explained by social norms, business ethics and illegal business practices that come from the cultural and historical background. This paper focuses on the ethical dilemma and tries to figure out how morality reflects in the tendency to participate in shadow economy. A qualitative approach is applied in this paper to find linkages between moral norms and an acceptance of the shadow economy. This paper supports the idea that people’s backgrounds, their moral norms and close relationships affect how they perceive tax evasion and how much they are willing to participate in such illegal activities.

Keywords: shadow economy; moral norms; tax evasion; tax morale; morality (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... 11562.xml?format=INT (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Ekonomika (Economics) is currently edited by Algirdas Miskinis

More articles in Ekonomika (Economics) from Sciendo
Bibliographic data for series maintained by Peter Golla ().

Page updated 2019-03-12
Handle: RePEc:vrs:ekonom:v:96:y:2017:i:3:p:44-55:n:4