The Shadow Economy in Bulgaria During the Period 2006-2019
The Shadow Economy in Bulgaria During the Period 2006-2019

Summary/Abstract: The main objective of the article is to obtain an estimate for the size and the trend of the shadow economy in Bulgaria. Based on the monetary approach, we find that the shadow economy in Bulgaria for the period 2006-2019 tends to decline as a ratio to GDP: from 31.7%, it shrinks to 21.1%. This trend could be explained by the country’s accession to the European Union, as this process is associated with the harmonisation of the domestic legislation, stricter procedures, and targeted measures to curb the shadow economy by several successive governments. Despite the declining trend, the share of the shadow economy in the country remains still relatively high. This is an obstacle to its economic and social development and there is a clear need for an in-depth analysis of this phenomenon and further measures to limit it and bring it to a much lower level.

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