Economist Calin Corjan: Because of “shadow economy” the state is forced to increase the burden on legal sector

The scales of shadow economy commented the economist Calin Corjan, stating that such a phenomenon cannot but cause concern.

According to data of independent analytical centre “Expert-Grup”, in Moldova for 2013 the share of shadow economy in GDP constituted 28%. This state of affairs will affect negatively the competitiveness of some economic agents, and may also lead to decrease of productivity index in the domain of labour.

Analytical centre affirms that the highest level of informal employment is observed in agricultural sector – 66.4%, in construction – 12.6%, and also in public sector – 0.1%.

The scales of shadow economy commented the economist Calin Corjan, stating that such a phenomenon cannot but cause concern.

“The shadow economy leads to decrease of state budget revenues. What happens then? The state is forced to increase the burden on legal sector, and this leads to vicious circle: going away to shadow – increase of tax burden – even greater going away in shadow”, – concluded Calin Corjan.

It is important for Moldova to maintain economic relations with both the East and the West – Calin Corjan >>>

Expert-Grup is a think-tank specialized in economic and public policy research. As an independent organization, Expert-Grup reflects the ideals of young intellectuals from Moldova, who set up the institution with the purpose of contributing to the country’s development. We are positioning ourselves as a politically and ideologically neutral think-tank, and we do not represent any economic, corporate and political interests. Expert-Grup was established in 1998 and started the research activity in 2006.

The mission of the organization is to promote the public interest and to develop efficient and innovative solutions for the development of the Republic of Moldova.
In order to fulfil this mission, Expert-Grup provides the necessary creative and institutional environment, encouraging expression of free and non-trivial thinking, which makes us a leading source of unbiased economic analysis.