THE SHADOW ECONOMY (BLACK ECONOMY) IN GREECE: SIZE, REASONS AND IMPACT
The shadow economy is a multifunctional economic and social phenomenon with serious consequences in many aspects of the everyday life (economic, political, social, etc.).
The proposed study:
- Analyzes at a theoretical level the reasons of black/shadow economy in GREECE.
- Develops through technical analysis the relations between non-registered economy, black economy and tax evasion.
- Investigates via special statistical/questionnaire research (qualitative), the black economy and the tax evasion in Greece. Also, an econometric analysis will take place.
- Measures the size of black economy and tax evasion at national level and, where possible, at a sectoral or sector-based level.
- Locates the precise reasons for the appearance of this phenomenon in Greece through the analysis of particular financial, social and institutional frames.
- Proposes structural policies for the effective confrontation of the phenomenon.
Our proposal will help in the promotion of growth of the least developed regions in Greece. The successful implementation of this project is expected to have a positive impact in:
- the local and the national GDP growth,
- the confrontation of the problem of high deficits of Greece,
- the inversion of the structural tendency to avoid paying social contributions and of tax evasion,
- the reduction of corruption,
- the reduction of bureaucracy,
- the increase of national income, but also
- the improvement of entrepreneurship (business environment),
- the improvement of reliability of Greek statistical data,
- the fiscal conscience,
- the improvement of confidence in the state,
- better state finances,
- the increase of macroeconomic factors such as income, employment, and consumption,
- the consolidation and extension of the productive basis of economy,
- the appearance, in the medium or long run, of many positive side effects.