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Financial Services on the Black Market

Author

Listed:
  • Pawel DEC

    (Institute of Corporate Finance and Investment, Warsaw School of Economics)

  • Piotr MASIUKIEWICZ

    (Institute of Value Management, Warsaw School of Economics, President of the Polish Society of Praxeology)

Abstract

The article concerns the problems of the black market and financial services offered to entrepreneurs. It is a quite poorly explored area of economics, which, because of its specificity, requires very meticulous research methods. Entrepreneurs conducting their activities have in virtually every country the opportunity to take loans to black. It is widely known that lending to black is the better, if you can easily gain funds and if the creative accounting is possible, and the penalties in this respect are small. The authors tried to prove the thesis that there is a potential demand for illegal loans in the sector of small and medium-sized enterprises that can be implemented in case of fulfilment of business risks and growing funding gap of small and medium-sized enterprises in the economy. The article presents the results of their own painstaking research on a sample of 609 companies.

Suggested Citation

  • Pawel DEC & Piotr MASIUKIEWICZ, 2019. "Financial Services on the Black Market," Romanian Journal of Economics, Institute of National Economy, vol. 48(1(57)), pages 48-62, June.
    • Handle: RePEc:ine:journl:v:48:y:2019:i:57:p:48-62
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    References listed on IDEAS

    as
    1. Oliver Reimers, 2015. "Tax Evasion and the Shadow Economy," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(04), pages 61-62, January.
    2. Claudio Quintano & Paolo Mazzocchi, 2015. "The shadow economy as a higher order construct inside European governance," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 42(3), pages 477-498, August.
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    5. Berdiev, Aziz N. & Saunoris, James W., 2016. "Financial development and the shadow economy: A panel VAR analysis," Economic Modelling, Elsevier, vol. 57(C), pages 197-207.
    6. Oliver Reimers, 2015. "Tax Evasion and the Shadow Economy," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(4), pages 61-62, 01.
    7. Paul Ponsaers & Joanna Shapland & Colin C. Williams, 2008. "Does the informal economy link to organised crime?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 35(9), pages 644-650, August.
    8. repec:ces:ifodic:v:12:y:2015:i:4:p:19149998 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    lack market; Financial service; Illegal loans;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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