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The underground economy is a reality of life around the world and its emergence coincides with the emergence of the state and the imposition of rules. In 2011, R. Neuwirth estimated that the shadow economy was worth 10 trillion US dollars, employing about 1.8 billion people. In fact, if this economy were a state, it would be the second largest economy in the world, after the United States. ACCA predicts that this type of economy will decline globally by 2025, from 23% of global GDP in 2011 to about 21% in 2025. The average size of the hidden economy in each country today varies from 7.8% of GDP in the US at 67% in Azerbaijan. The underground economy negatively affects the fiscal health of a state. There are various theories that argue that if governments were able to control the manifestations of the hidden economy, many public sector tax problems, such as public debt, for example, could be reduced. Countries with a significant underground economy may face rising poverty, inequality and poor public services in the future. For this reason, the structures that monitor the situation of the underground economy need to exercise their activity as well as possible. JEL: F16, F17, O17. |
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