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The Unofficial Economy in Russia

Byung-Yeon Kim

No 797, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: This paper provides the various estimates of Russia’s unofficial economy during the transition period and discusses the estimation methods of the unofficial economy. It suggests that Russia’s unofficial economy, which substantially increased during the early 1990s and stands still high compared to other countries, is caused by the institutional and cultural legacy from the Soviet era and problems in the transition period such as poor quality of institutions and newly available opportunities. It emphasizes the importance of understanding the evolution of the unofficial economy over time and its heterogeneity across countries.

Pages: 24pages
Date: 2011-11
New Economics Papers: this item is included in nep-cis, nep-cwa, nep-iue and nep-tra
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