UNDERGROUND ECONOMY – NEGATIVE AND POSITIVE EFFECTS
UNDERGROUND ECONOMY – NEGATIVE AND POSITIVE EFFECTS

Summary/Abstract: The underground economy is an undesirable reality for all the societies. Its size is difficult to calculate. The activities covered by the underground economies are undeclared legal activities, torts and fraudulent activities. It was tried to measure this economy, resulting in four models. In addition to a number of negative effects, the underground economy has also some positive effects. A very large part of the respectable economy of the European Union operates partly or totally outside the legal framework and is continuously fed by the expansion of the community. Romania has a bicephalous economy. One part respects the law, and the other one is an informal economy.

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