Shadow economy and sample of Turkey

The shadow or unregistered economy occurs when economic units failing to fulfill their social, economic, moral and legal responsibilities, avoiding public supervision in their economic activities, and damaging state and society to achieve an economic income. The problem of shadow economy was to be noticed in 1960's and 1970's engaged attention of researchers resulting a variety of surveys. In literature, since the 1990's, the shadow economy sit on the economic agenda of our country and was to be subject of many different researches. Nowadays the informal economic matter has become a global problem which most economies in the world face, deal with and struggle to make solutions about. The shadow economy occurs just not in less developing countries but also in developed countries with different sizes. The methods of estimation for shadow economy can be gathered under two headings: Direct estimation method and indirect estimation method. To estimate the in shadow economy correctly and firmly, the things that causes the shadow economy should be well determined. Social, legal, political and economic reasons should be analyzed in a good way. Most importantly, the data should be robust and regular. In this study, for the estimation of dimensions of shadow economic activities in Turkish economy , the employment method, the physical input method, the fixed rate method and the trading volume method from indirect estimation methods were used. According to the results of the estimation study, the size of the shadow economy in Turkish economy is 4,9 % with the employment approach, 1.8 % with the physical input approach, 26,8 % with the fixed rate approach and finally 26,8 % with the trading volume approach, on average. Keywords: Shadow Economy, The Employment Method, The Physical Input Method, The Fixed Rate Method, Trading Volume Method