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The Hidden Economy in Bulgaria - Opinions and Assessments from Representatives of the Business

Author

Listed:
  • Vasil Bozev

    (University of National and World Economy, Sofia, Bulgaria)

  • Iva Raycheva

    (University of National and World Economy, Sofia, Bulgaria)

Abstract

The article aims to present the results of an up-to-date independent study of the hidden economy in Bulgaria. It was carried out between November 2023 and February 2024, as a survey among business representatives in the country through a representative sample of 335 enterprises. The main results show that the estimated share of the hidden economy in the total sales volume is between 26% and 50%, the highest in the construction sector, catering, and tourism. Most often, these practices are associated with manipulation of the financial statements and the employed workforce for which they are favorable conditions mainly due to corruption, crime, and impunity followed by unfair competition and a lack of incentives for private business development.

Suggested Citation

  • Vasil Bozev & Iva Raycheva, 2024. "The Hidden Economy in Bulgaria - Opinions and Assessments from Representatives of the Business," Ikonomiceski i Sotsialni Alternativi, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 145-156, June.
    • Handle: RePEc:nwe:iisabg:y:2024:i:2:p:145-156
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    More about this item

    Keywords

    tax evasion; corruption; hidden economy; informal contracts;
    All these keywords.

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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