Black economy

Black economy, shadow economy or black market is the type of market, which is operating non-compliant with the regulations breaking them and potentially invovling transfer of illegal goods between parties. Black economy in not controlled by any government, and that is why it is called black or shadow. Governments of different countries fight with black economies, as they directly impact on policymaking, macroeconomic growth of the coutnry, quality of life, investments in the country and many other factors (A. Kumar, 2016). Depending on the size of the black economy, it will affect differently the live in the country. If the shadow economy is huge, the impact of this economy will be large and it will be impacting the whole population. For instance, in countries, where the size of black market is small, it is almost neglectable and these countries tend to be more developed, as shadow economy has no real power (A. Kumar, 2016).

(A. Horning, C. Thomas, A. Marcus and J. Striken, 2018).

Defining black economy

Black economy

Characteristics of black economy

Below are listed the charateristics that can be assigned to black economy:

References

• Caneppele S., Riccardi M. and Standridge P. (2013). Green energy and black economy: mafia investments in the wind power sector in Italy. Crime Law Soc Change, Vol. 59, 319–339.
• Horning A., Thomas C., Marcus A. and Sriken J. (2018), Risky Business: Harlem Pimps’ Work Decisions and Economic Returns. Deviant Behavior.
• Kumar A. (2016), Estimation of the Size of the Black Economy in India, 1996–2012. Economic & Political Weekly, Vol. 48.

Author: Nikita Shtemenko