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Underground economy consists of the activities which cannot be identified through traditional measurement systems of economy and, therefore, are not registered within the national accounting system, and included in the calculation of GNP. Since the frequent crises seen in our country in recent periods are due to the borrowing requirement of the public sector, underground economy has been a frequent subject in the discussions conducted in business and administrative circles, and professional organizations. The purpose of this study is to find out the sources of underground economy and develop solutions to it. [ABSTRACT FROM AUTHOR]

Small and medium-sized enterprises (SMEs) play significant roles in regional development. In our country, as in the other countries, SMEs are the most important enterprises in production, which cover approximately 99% of the enterprises in the Northeastern Anatolia. In this study, problems (such as subsidies, finance, raw materials, marketing, etc.) faced by the manufacturing enterprises in the Northeastern Anatolia were listed using questionnaires, and evaluated using statistical methods, and solutions were suggested to these problems. [ABSTRACT FROM AUTHOR]

The underground economy consists of unregistered income generating activities which are concealed from public authorities. It distorts macroeconomic indicators, thus leading to improper implementation of economic policies. In particular, considering the popular idea that successive economic crises resulted from public sector borrowing requirement, the impact of the underground economy is very significant in Turkey. This study examines the size and possible impacts of the underground economy in Turkey, giving detailed analysis of three tiers of underground economy:tax evasion, unregistered employment, and illegal economic activities. [ABSTRACT FROM AUTHOR]