Shadow economy is the subject of my final thesis. It is a very extensive, complex, dynamic and complicated phenomenon, which requires a lot of attention. To begin with it is really difficult to define and name it. Among the shadow economy are undoubtedly activities, whose production is illegal, and not registered or approved by the law.
Getting to know better the term shadow economy is the purpose of my thesis. I was specifically interested in what causes shadow economy and why people start to become involved in it. I was also interested in its spreading, consequences and how is the government dealing with it. The first part of my thesis specifically defines the term shadow economy, its activities, spreading in Slovenia, and what are the consequences and measures taken against it. The second part of it is the research on the effects of shadow economy in Slovenia and the rest of the world. For this research I helped myself with a quick survey, which helped me analyze current situation. I came to a conclusion that shadow economy spreads more in less developed countries. It is very widespread in rural parts of Africa and South America. On the other hand Europe, especially Austria and Switzerland, are parts of the world with the least shadow economy. There are also a lot of factors that impacts shadow economy. The main ones in Slovenia and globally are; high taxes, lower incomes, unemployment, bureaucratic burden, and a lot of administrative obstacles. Main point of shadow economy is increase in income by tax incompliance.
The goal of my thesis is to analyze what impacts shadow economy in Slovenia and around the globe. It gives a closer look into shadow economy and educate us about its global spread, cause, and shows us what kind of consequences can leave behind. Consequences that can hurt the country and its citizens.
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