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On The Development Of The Albanian Informal Economy

Author

Listed:
  • Majlinda BELLO
  • Frederik ÇUÇLLARI
  • Mirela CINI

    (Fan S. Noli University, Korce, Albania)

Abstract

The purpose of the paper is to analyze the informal economy in Albania. The measurement of informal economy may be realized through direct and indirect methods. The collection of data about informal economic activities, the frequency and the volume of the underground activities present a challenge, because of the data limitations. Therefore, to measure it used more indirect methods. Albanian governments have always adopted a philosophy that aims to formalize the economy through legal and institutional improvements, reducing taxes, fighting corruption and tax evasion; improvement in revenue collection from customs and taxes in general, improving governance and increasing efficiency of public institutions. Albania is on the way of the integration in the EU. The integration perspective should be supported by concrete politics on the improvement of government functioning and decrease of the informal sector, so that the people think that their country is on the right way toward modernization and prosperity.

Suggested Citation

  • Majlinda BELLO & Frederik ÇUÇLLARI & Mirela CINI, 2011. "On The Development Of The Albanian Informal Economy," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 315-322, November.
    • Handle: RePEc:aio:manmar:v:ix:y:2011:i:2:p:315-322
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    File URL: http://www.mnmk.ro/documents/2011-2/14_Albania_FFF.pdf
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    References listed on IDEAS

    as
    1. Loayza, Norman V., 1996. "The economics of the informal sector: a simple model and some empirical evidence from Latin America," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 45(1), pages 129-162, December.
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    More about this item

    Keywords

    informal economy; taxes; tax evasion; corruption;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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