INFORMAL ECONOMY IN RURAL AREAS IN ROMANIA
INFORMAL ECONOMY IN RURAL AREAS IN ROMANIA

Summary/Abstract: Before 1990, during the communist regime, informal economy which operates outside the formal sector was recognized. Moreover, since the early 90s the informal economy has become a problem for Romania including strictly economic activities that take place outside the legal framework, regarding to legislation. From 1999 to 2010, the size of informal economy contributes a high value in GDP of Romania which is around 34%- 37%. The informal economy in rural area has the largest labor force in agriculture which registers the instable and low income. Our paper uses statistical method and econometrics with linear model with Durbin- Watson test by software SPSS to observe the role of rural administration in informal economy in Romania. Public policies are implemented by administration should outline a model to transform informality to formality in the long-term objectives; furthermore, in building a competitive and strong local government involved the rural level.

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