Formalizing the Shadow Economy in Serbia

1. Front Matter

   Pages i-ix

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2. Introduction

   • Gorana Krstić

   Pages 1-3Open Access

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3. The Shadow Economy: Challenges to Economic and Social Policy

   • Mihail Arandarenko

   Pages 5-12Open Access

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4. The Concept of the Survey of Businesses and Entrepreneurs Operating Informally

   • Gorana Krstić

   Pages 13-19Open Access

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5. Causes of the Shadow Economy

   • Milojko Arsić, Mihail Arandarenko, Branko Radulović, Saša Ranđelović, Irena Janković

   Pages 21-46Open Access

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6. What Is the Extent of the Shadow Economy in Serbia?

   • Friedrich Schneider, Gorana Krstić, Milojko Arsić, Saša Ranđelović

   Pages 47-75Open Access

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7. Shadow Economy in the Business and Entrepreneurial Sectors

   • Gorana Krstić, Branko Radulović

   Pages 77-99Open Access

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8. Effects of Formalisation of the Shadow Economy

   • Milojko Arsić, Gorana Krstić

   Pages 101-107Open Access

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9. Analysis of the Administrative Capacity of the Institutions in Charge of Overseeing the Operations of Business Entities

   • Mihail Arandarenko

   Pages 109-121Open Access

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10. Main Findings and Recommendations

    • Gorana Krstić, Friedrich Schneider, Mihail Arandarenko, Milojko Arsić, Branko Radulović, Saša Ranđelović et al.

    Pages 123-158Open Access

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11. Executive Summary

    • Gorana Krstić, Friedrich Schneider, Mihail Arandarenko, Milojko Arsić, Branko Radulović, Saša Ranđelović et al.

    Pages 159-170Open Access

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12. Back Matter

    Pages 171-179

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The main objective of this book is to develop a strategy and policy measures to enhance the formalization of the shadow economy in order to improve the competitiveness of the economy and contribute to economic growth; it explores these issues with special reference to Serbia. The size and development of the shadow economy in Serbia and other Central and Eastern European countries are estimated using two different methods (the MIMIC method and household-tax-compliance method). Micro-estimates are based on a special survey of business entities in Serbia, which for the first time allows us to explore the shadow economy from the perspective of enterprises and entrepreneurs. The authors identify the types of shadow economy at work in business entities, the determinants of shadow economy participation, and the impact of competition from the informal sector on businesses. Readers will learn both about the potential fiscal effects of reducing the shadow economy to the levels observed in more developed countries and the effects that formalization of the shadow economy can have on economic growth.

• Economic growth
• Enterprises
• Policy measures
• Serbia
• Shadow economy

• Faculty of Economics, University of Belgrade, Belgrade, Serbia

  Gorana Krstić

• Department of Economics, University of Linz, Linz, Austria

  Friedrich Schneider

Gorana Krstić is an Associate Professor at the Faculty of Economics, University of Belgrade. She obtained her PhD in Economics at School of Social Sciences, Sussex University in 2002. Her main research interests are the labour markets, informal economy, poverty and social policy. She has published (and edited) 16 monographs in these fields and has had more than 40 articles published in both national and international journals. She has been consulting short and long term for leading international agencies, including the World Bank, UNDP, ILO, EC and USAID.

Since 1986 Friedrich Schneider has been Professor of Economics at Johannes Kepler University of Linz, Austria. He obtained his PhD in Economics from the University of Konstanz in 1976 and has held numerous visiting and honorary positions at a number of universities. He was the European Editor of Public Choice from 1991 to 2004 and has published extensively in leading economics journals including The Quarterly Journal of Economics, The American Economic Review, The Economic Journal, and Kyklos. He has published (1974 – December 2013) 70 books, 206 articles in scientific journals, and 178 articles in edited volumes.

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