The underground economy problematic, measurement and from the theoritical and conseptual perspective

The underground economy which is an increasing event in Turkey and in theworld, has a complex structure if its reasons, consequences and working is investigated.The need for the clear determination of the reasons of underground economy and theneed for the registering into official economy is come out if experiences of both Turkeyand the other countries are investigated.Because of the expansion of underground economy; workers are deprieved oftheir social security rights, tax income decreases, budget deficit increases and there is anunjustly competition is constructing among official and unofficial economy. The aim ofthe solutions which are derived to solve underground economy problem is to purify thecountry?s economy from the negative conditions.The aim of this study is to present a literatural sight about the undergroundeconomy in Turkey and in the world, to compare the extention of the undergroundeconomy in different countries and to present policy proposals to solve undergroundeconomy problematic. In the first chapter of this study, the description of undergroundeconomy is made, the components of underground economy, is causes and the effects ofundergrı,ound economy investigated. In the second chapter, the methods for measuringunderground economy and extend of underground economy in Turkey and in the worldis investigated by utilizing from the literature. In the last chapter the proposals toprevent underground economy is presented.With the frame which expressed above, the effects of underground economy onTurkish economy which are look as if positive in short run, seems to have negativeeffects in the long run. Turkish economy must accept the underground economy as anopponent to the official economy and must struggle with underground economy.