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Informality versus shadow economy: reflecting on the first results of a manager’s survey in Kyrgyzstan

Author

Listed:
  • Abel Polese
  • Gian Marco Moisé
  • Talshyn Tokyzhanova
  • Tommaso Aguzzi
  • Tanel Kerikmäe
  • Ainoura Sagynbaeva
  • Arnis Sauka
  • Oleksandra Seliverstova

Abstract

This article is the first attempt to apply Putnis and Sauka's approach to direct measurement of the shadow economy through a survey of company managers in Central Asia. The results of the survey are used to calculate a shadow economy index for 2017 and 2018 in Kyrgyzstan, and to discuss the difference between direct and indirect methods in calculating the size of a shadow economy. We also propose a distinction between shadow economies and informality in general. While a shadow economy is usually understood to arise as a consequence of underreporting of income, we argue that informality is best understood as the aggregate of non-monetary and non-economic practices used in society. Applying this distinction to our case, we suggest that the origins of Kyrgyzstan's shadow economy are not only economic; rather social and cultural processes have had significant effects. This has implications for policy responses that address shadow economic activities.

Suggested Citation

  • Abel Polese & Gian Marco Moisé & Talshyn Tokyzhanova & Tommaso Aguzzi & Tanel Kerikmäe & Ainoura Sagynbaeva & Arnis Sauka & Oleksandra Seliverstova, 2023. "Informality versus shadow economy: reflecting on the first results of a manager’s survey in Kyrgyzstan," Central Asian Survey, Taylor & Francis Journals, vol. 42(1), pages 149-170, January.
    • Handle: RePEc:taf:ccasxx:v:42:y:2023:i:1:p:149-170
    DOI: 10.1080/02634937.2022.2093328
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