Croatian Economic Survey, No. 5, 2003.
Original scientific paper
ASSESSMENTS OF THE UNOFFICIAL ECONOMY IN THE REPUBLIC OF CROATIA IN 1998 USING THE SYSTEM OF NATIONAL ACCOUNTS
Davor Mikulić
Abstract
This article was motivated by the fact that the complete economic indicators are a necessary prerequisite for good economic policymaking. Therefore, it is useful to possess an estimate of the extent of economic activities that bypass the standard statistical system of a country. In the article, the method of discrepancy in the system of national accounts was applied to assess the scope of unofficial economy in the Republic of Croatia in 1998. The method is based on fundamental identity describing economic flows: the expenditure of one economic unit is the revenue of another. Therefore, the sum of total expenditures in national economy must be equal to the sum of total revenues. The total unofficial economy based on this estimate was between 9.3 percent and 12.8 percent of the officially recorded GDP, but the author stresses that this result should be interpreted with caution, since the method applied usually generates the lower limit of the estimate.
Keywords
Hrčak ID:
6342
URI
Publication date:
15.4.2003.
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