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Underground Economy in Russia: the Size and Specific Features

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Underground Economy in Russia: the Size and Specific Features
PLEKHANOV RUSSIAN ACADEMY OF ECONOMICS

INTERNATIONAL BUSINESS SCHOOL

COURSEWORK IN MICROECONOMICS

Underground Economy in Russia: the Size and Specific Features

Moscow
2011

Table of Contents

Introduction 2
§1 The notion and essence of underground economy. 3 1.1. Definition of underground economy 4 1.2. Structure of underground economy 5
§2 The history and peculiaruties of underground economy formation in Russia. 6 2.1. Overall view on shadow economy in Russia. 6 2.2. From Soviet underground economy to Russian. 8 2.3. The dynamics of economic criminality. 10
§3 The reasons of underground economy development in Russia. 10 3.1. Reasons for underground economy appearance. 10 3.2. Reasons for small enterprises to go underground. 12
§4 Underground economy and its peculiarities in modern Russia. 13 4.1. Size of underground economy in modern Russia. 13 4.2. The peculiarities of underground business and economic reforms in Russia. 15
§5 Socio-economic effects of underground economy in Russia. 17 5.1. Tax and budget sphere. 17 5.2. Money-and-credit sphere. 18 5.3. Economic growth and investment process. 18 5.4. Competition and effectiveness of money mechanism. 20 5.5. Employment, reproduction of labour-power and labour productivity. 20
§6 The struggle against underground economy. 21 6.1. The ways of governmental influence on underground economy. 21 6.2. Legal normative aspects of struggle against the criminalization of economy. 23 6.3. The direction of struggle against underground economy. 24
Conclusion 24
Endnotes 25
Bibliography 27
Appendices 28

Introduction

One of the most discussed questions that is mostly absorbed by the attention of Russian publicity is the phenomenon of underground economy. Underground economy is a subject, which is very complicated for the research. That happens so due to many reasons. First, it is practically impossible to estimate the



Bibliography: 1. McConnell, Brue. Economics. McGraw-Hill Higher Education, 2002; 2 18. 2 "Nࠀࠁࠨࡇࡊࢪࢫࢬࢭࢮࢯࢰࢷࢻࢼ࣐࣑गघ๽ຊ຋ຌຍ료ꏌ綐綐첐敭敡慕啥Cᘢ⵨ꄲ䌀ᩊ帀͊开h愀ᩊ洀H渄H琄hᘖ⵨ꄲ开h洀H渄H琄hᘆ⵨ꄲ̏jᘀ⵨ꄲ唀Ĉᘞ⵨ꄲ伀J儀J开h洀H渄H琄hᘥ⵨ꄲ㔀脈䩃䩞䡟ÿ䩡䡭Ѐ䡮Ѐ䡴ÿᘥezavisimaya gazeta" of December 19th, 2008 19

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