Business Excellence, Vol. 8 No. 1, 2014.
Preliminary communication
PHENOMENON OF GREY ECONOMY AND ITS FORMS IN THE MONTENEGRO ECONOMY
Marina Milić
; Counselor for Economic Aff airs, U. S. Embassy in Montenegro
Abstract
No matter how hard the state tries to legally regulate the operation of economic activities, to register and to tax them, there are always some segments that can avoid some of these regulations. There is a need to follow these particular transactions and their impact on the size and structure of the GDP, the state budget and other macroeconomic aggregates. This is particularly important for economies in transition when the total economic activity slows down, and the importance of the informal economy increases. In economic terms, key generators of underground economy represent an excessive tax system as well as inappropriate regulations in the economy. As direct consequences occur transfers of the regular
business activities to the so–called informal zone. To some extent, the business activity in this zone represents a spontaneous market reaction to unnatural interventionism or an improper state interference in the economy.
Keywords
grey economy; transaction costs; transition; entrepreneurship; tax system
Hrčak ID:
123570
URI
Publication date:
27.6.2014.
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