Shadow economy as a factor of destabilization

Abstract

Post-Soviet states have inherited from the Soviet economic model a significant shadow economy. Its size has increased significantly in the context of transition and the formation of new business models. A lack of evidence-based developments on the de-shadow economy has contributed to the rapid expansion of the shadow economy. The failure of the state to create a transparent and favourable business climate and to promote entrepreneurial initiative and activity against the background of a difficult socio-economic situation and an ineffective institutional environment has intensified the shadowing of the economy. These processes influence the rapid development of unregistered economic activities of enterprises, leading to the violation of legally established norms and the establishment of unregulated and illegal economic activities. JEL А 10.