THE SOCIOECONOMIC EFFECTS OF THE SHADOW ECONOMY: A THEORETICAL AND EMPIRICAL REVIEW

Rakhmonov , Azizjon

Муҳандислик ва Иқтисодиёт · 2026-yil

Annotatsiya

This paper reviews the theoretical and empirical literature on the socioeconomic effects of theshadow economy. It examines both the positive and negative implications of informal economic activities foreconomic growth, public finance, market competition, institutional quality, and social welfare. The review showsthat although the shadow economy may temporarily support employment, entrepreneurship, and economicresilience under conditions of institutional limitations, its long-term effects are predominantly negative, includingreduced tax revenues, distorted competition, weakened institutions, and slower sustainable growth. The findingssuggest that improving institutional quality and tax governance is essential for reducing the size of the shadoweconomy and promoting inclusive economic development.

Maqola ma’lumotlari
MualliflarRakhmonov , Azizjon
JurnalМуҳандислик ва Иқтисодиёт
Nashr sanasi2026-03-30
Jild4
Son3
Betlar250-256
TilIngliz

Kalit so‘zlar

shadow economy, informal economy, economic growth, tax policy, tax revenue, institutional quality, market competition, public finance, social welfare, sustainable development.

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