Journal of Business & Economic Policy

The Reasons of Underground Economy, Its Results, Methods and the Turkish Case
Assist. Prof. Dr. Zeynep Erdinç

Abstract
There are no agreements on the definition of the underground economy and on its measurement approaches as it has many different names. Using false or illegal documents to pass laws and actions through government bodies is deceptive and misleading the government i.e Underground economy. Its activities are caused by financial, economic and political problems. It has positive, negative and many effects on the economy and society. Therefore, Studies about recording the unrecorded economy is the most important aim of our leaders in our country. It is impossible to estimate the exact rate of informal economy, however some measurement methods heve been improved. In this study, first the definition of underground economy will be given, second positive and negative effects will be explained. At the last part, the works to measure it and the dimension of underground economy on Turkey will be mentioned.

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