THE MECHANISM OF INFLUENCING THE SHADOW ECONOMY
Keywords:
Shadow economy, informal sector, economic regulation, tax policy, financial transparency, digitalization, government intervention, monitoring mechanisms, fiscal policy, economic formalizationAbstract
The shadow economy, which operates outside formal regulations and taxation, poses significant challenges to national economic stability and development. This paper explores the mechanisms that can effectively influence and reduce the scale of the shadow economy. By analyzing economic, legal, administrative, and digital interventions, the study identifies strategic approaches that governments can implement to formalize informal economic activities. Special attention is given to transparency policies, financial literacy programs, tax incentives, and the role of digitalization in enhancing monitoring and compliance. The findings suggest that a multi-faceted and coordinated approach is essential for mitigating the negative effects of the shadow economy and promoting sustainable economic growth.
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