<abstract xmlns="http://www.w3.org/1999/xhtml">Economic theory and practice of developed countries have shown that the good functioning of market economies requires the existence of stable institutions that are effective in the application of legal rules as a precondition for the proper functioning of the economic and fiscal system.In the process of building a market economy in Southeast European countries, along with the sector of legal economy there coexists a large sector of shadow economy, tax evasion and high levels of corruption.Analyses made by many authors and relevant national and international institutions estimate that the amount of the shadow economy, tax evasion and corruption in the analyzed countries despite a declining trend in the last decade continues to be at the level of 25-50% compared with the legal sector of the economy.The author aims through a comparative approach to analyze the level of the shadow economy, tax evasion and corruption in the economies of Southeast Europe and provides some recommendations for governments to overcome these negative phenomena.</abstract>

Economic theory and practice of developed countries have shown that the good functioning of market economies requires the existence of stable institutions that are effective in the application of legal rules as a precondition for the proper functioning of the economic and fiscal system.In the process of building a market economy in Southeast European countries, along with the sector of legal economy there coexists a large sector of shadow economy, tax evasion and high levels of corruption.Analyses made by many authors and relevant national and international institutions estimate that the amount of the shadow economy, tax evasion and corruption in the analyzed countries despite a declining trend in the last decade continues to be at the level of 25-50% compared with the legal sector of the economy.The author aims through a comparative approach to analyze the level of the shadow economy, tax evasion and corruption in the economies of Southeast Europe and provides some recommendations for governments to overcome these negative phenomena.

The level of the shadow economy, tax evasion and corruption: The empirical evidence for SEE countries

Faculty of Business and Economics, South East European University Tetovo

SEEU Review

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Economic theory and practice of developed countries have shown that the good functioning of market economies requires the existence of stable institutions that...

The level of the shadow economy, tax evasion and corruption: The empirical evidence for SEE countries

Published Online: Apr 04, 2016

Page range: 6 - 22

DOI: https://doi.org/10.1515/seeur-2015-0025

Keywords
economic transition, the informal sector, tax evasion, structural reforms, the Southeast Europe (SEE), UE

© 2015 South East European University

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The level of the shadow economy, tax evasion and corruption: The empirical evidence for SEE countries

Published Online: Apr 04, 2016

Page range: 6 - 22

DOI: https://doi.org/10.1515/seeur-2015-0025

Keywordseconomic transition, the informal sector, tax evasion, structural reforms, the Southeast Europe (SEE), UE

© 2015 South East European University

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
economic transition, the informal sector, tax evasion, structural reforms, the Southeast Europe (SEE), UE