SHADOW ECONOMY AND ILLEGAL MARKET BEHAVIOR IN TRANSITION

Authors : Ciparay TUGANOVA

Pages : 1-8

View : 22 | Download : 11

Publication Date : 2010-05-01

Article Type : Research Paper

Abstract :Modern globalization of socio-economic relations in a global scale has opened up newopportunities for further development and prosperity of mankind and, at the sametime, raised new global threats, including transnational character is in the process andthe shadow economy. According to IMF staff, the total amount of shady operations inthe world reaches 10-11 trillion. dollars, ie almost equal to U.S. GDP.Its features shadow economy is in transition. The specifics of the shadow economyare associated with radical changes in the entire economic system and sociopolitical life, imperfect legislation, low-life, an illegal market-type behavior. Thus,there emerged many factors for the increase of the shadow economy.In the Kyrgyz Republic, the expansion of the shadow economy has reached such alevel that has become a serious obstacle to the development of legitimate business, thevery presence creating unequal conditions of competition. In addition, the shadoweconomy has become a major source of corruption and bribery in the country
Keywords : transition period, shadow economy, illegal market behavior, taxation, international experience, legislation