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

Petranov, Stefan (2021): Shadow economy and regional development - an argument in favor of fiscal decentralization. Published in: Trakia Journal of Sciences , Vol. 19, No. Supl. 1 (15 November 2021): pp. 62-67.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: shadow economy, regional development, regional policies, fiscal decentralization, Bulgaria
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E26 - Informal Economy ; Underground Economy; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H71 - State and Local Taxation, Subsidies, and Revenue; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics

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