Logo
Munich Personal RePEc Archive

The effects of the underground economy on economic competitiviness

Donici, Gabriel-Andrei/GA (2012): The effects of the underground economy on economic competitiviness.

[thumbnail of MPRA_paper_36025.pdf]
Preview
PDF
MPRA_paper_36025.pdf

Download (234kB) | Preview

Abstract

A real, almost palpable, connection exists between the official and the underground economy. More than that, both sides of the economy (official and underground) are connected with the competitiveness of a country. Strangely a large presence of undereground in the economy is a sign of competitiveness. Although we would be tempted to say that underground is bad for competitiveness the reality is that due to taxes and regulations the resources (especially the human ones) used ”illegaly” would probably be wasted. In the end the wages from the underground economy return to the oficial one suporting it and hence the competitiveness of the country.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.