Shadow Economy Index for the Baltic Countries 2009-2016
51 Pages Posted: 15 May 2018
Date Written: May 2017
The aim of the Shadow Economy Index for the Baltic countries is to measure the size of the shadow economies in Estonia, Latvia, and Lithuania, as well as to explore the main factors that influence participation in the shadow economy. We use the term “shadow economy” to refer to all legal production of goods and services produced by registered firms that is deliberately concealed from public authorities. The calculation of the Index draws on methodology developed by Putniņš and Sauka (2015) and is published annually since 2010 to provide policy makers with information for making justified policy decisions, as well as to foster a deeper understanding of entrepreneurship processes in the Baltic countries. This report analyses the dynamics of the shadow economy in Estonia, Latvia, and Lithuania during the period 2009-2016. It also provides evidence on the main factors that influence entrepreneurs’ involvement in the shadow economy and provides some policy recommendations. We also measure the amount of unregistered businesses in the Baltic countries.
Keywords: Shadow Economy, Latvia, Lithuania, Estonia
Suggested Citation: Suggested Citation