Effect of the non-observed economy on economic security in the Republic of Moldova
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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The non-observed economy refers to economic activity that escaped state control. Economic agents
have learned to circumvent the laws governing economic activity. The elements of the non-observed
economy are shadow production, smuggling, informal employment, income hiding, and other types of
tax evasion. Economic crimes could be divided into two groups. The first group is illegal activities
caused by high taxes or inefficient legislation, and the second is activities that harm not only the
country's economy but on society. One of the objectives of the research is an analysis of the main
shadow sectors, including informal employment, contraventions that affect entrepreneurial activity,
taxation, customs activity, and securities. Thus, a quantitative and qualitative assessment of the nonobserved
economy
was
carried
out
(case:
Republic
of
Moldova).
The
main
methods
used
are
theoretical
and
empirical. The authors identified the causes of the non-observed economy and their impact on
economic security and described methods to combat the shadow economy. Among the main reasons
are the lack of jobs, the relatively high unemployment among young people, and inefficient legislation.
One of the reasons for the non-observed economy is a way to make more money because illegal goods
are rare and have a high cost. Often, the existence of a shadow economy is caused by the high level of
corruption in the country. All the described cases of the non-observed economy negatively affect
economic security.
Description
Referințe bibliografice : pp. 9-11 (29 titl.)
Keywords
non-observed economy, informal employment, contraventions, economy, Republic of Moldova
Citation
STRATAN, Alexandru, GUTIUM, Tatiana, ŞAVGA, Larisa. Effect of the non-observed economy on economic security in the Republic of Moldova. In: Interdisciplinarity and Cooperation in Cross-border Research: proceedings of the 2nd international conference, June 2022, Chisinau. Chișinău, 2022, vol. 6, no.1: Economics, pp. 1-11.