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Regional economic discrepancies and the impact of the underground economy in Romania

Author

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  • Nicoleta-LuminiÈ›a Popescu

    (PhD Student, Bucharest University of Economic Studies,)

Abstract

The article explores the impact of the underground economy in Romania’s regions, using statistical analysis to identify key economic factors. Developed regions with higher GDPs and larger formal workforces have a smaller underground economy, while less developed regions face larger informal sectors, marked by significant income-expenditure discrepancies. The study highlights two main dimensions: overall economic performance and financial imbalances. The findings emphasize the need for region-specific policies, where stronger regions focus on protecting formal economies and weaker regions require stronger interventions to reduce the underground economy and promote formal business practices.

Suggested Citation

  • Nicoleta-LuminiÈ›a Popescu, 2023. "Regional economic discrepancies and the impact of the underground economy in Romania," Social-Economic Debates, Association for Entreprenorial Spirit Promotion, vol. 12(1), pages 1-21, octombrie.
    • Handle: RePEc:sdb:social:v:12:y:2023:i:1:p:1-21
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