1. Informality versus shadow economy: reflecting on the first results of a manager's survey in Kyrgyzstan.
- Author
-
Polese, Abel, Moisé, Gian Marco, Tokyzhanova, Talshyn, Aguzzi, Tommaso, Kerikmäe, Tanel, Sagynbaeva, Ainoura, Sauka, Arnis, and Seliverstova, Oleksandra
- Subjects
INFORMAL sector ,ECONOMIC activity ,SOCIAL processes ,ECONOMIC development ,ECONOMIC impact - Abstract
This article is the first attempt to apply Putnis and Sauka's approach to direct measurement of the shadow economy through a survey of company managers in Central Asia. The results of the survey are used to calculate a shadow economy index for 2017 and 2018 in Kyrgyzstan, and to discuss the difference between direct and indirect methods in calculating the size of a shadow economy. We also propose a distinction between shadow economies and informality in general. While a shadow economy is usually understood to arise as a consequence of underreporting of income, we argue that informality is best understood as the aggregate of non-monetary and non-economic practices used in society. Applying this distinction to our case, we suggest that the origins of Kyrgyzstan's shadow economy are not only economic; rather social and cultural processes have had significant effects. This has implications for policy responses that address shadow economic activities. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF