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What is Underground Economy INTRO TO TOPIC AND RESEARCH QUESTIONS It causes an over-bureaucratization in the economy. The more an economy is regulated, the more incentives firms receive to develop their activities in the underground economy, Belev, Boyan (2003). Why is it important to study For a comprehensive understanding of the roots of the shadow economy, it is advisable not only to estimate the current size of this phenomenon, but also to identify its most influential causal factors. Identification of the shadow economy’s causal factors and indicators is one of the key issues in the area of the shadow economy LITERATURE REVIEW METHODOLOGY AND THEORETICAL MODEL
