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Shadow Economy Index for Moldova and Romania

  • Talis J. Putnins
  • Arnis Sauka
  • Adriana Ana Maria Davidescu
Chapter
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Abstract

This report presents estimates of the size of the shadow economy in Moldova and Romania during the years 2015–2016. The estimates are based on surveys of entrepreneurs in both countries, following the method of Putniņš and Sauka (Journal of Comparative Economics 43:471–490, 2015). The components of the shadow economy captured by this approach include misreported business income, unregistered or hidden employees, and ‘envelope’ wages. Our findings suggest that both Moldova and Romania exhibit high levels of bribery, which is influenced by the number of unregistered companies. The results of this chapter highlight the importance of focusing on different forms of entrepreneurship particularly in transition economies.

Notes

Acknowledgements

We are grateful to the Centre for Sustainable Business at SSE Riga for the generous financial support that made data collection in Moldova possible as well as to the National Scientific Research Institute for Labour and Social Protection for funding data collection in Romania within the project PN 16440102 entitled ‘The impact of labour market institutions on informality. Micro and macro approaches’. We would also like to extend our gratitude to all entrepreneurs who agreed to participate in the interviews.

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Talis J. Putnins
    • 1
  • Arnis Sauka
    • 2
  • Adriana Ana Maria Davidescu
    • 3
    • 4
  1. 1.Stockholm School of Economics in Riga (Latvia)RigaLatvia
  2. 2.Centre for Sustainable BusinessStockholm School of Economics in RigaRigaLatvia
  3. 3.Department of Statistics and EconometricsBucharest University of Economic StudiesBucharestRomania
  4. 4.Department of Labour Market PoliciesNational Scientific Research Institute for Labour and Social ProtectionBucharestRomania

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