Shadow economy and its effects on economic growth in Turkey

ABSTRACT The concept of shadow economy has been become a subject for discussion especially in recent years because of the economic crisis due to unsolid financing of public finance. In this study first of all; the general causes of shadow economy have been tried to explain from the viewpoint of economics, public finance and sociology. After the evaluation of the possible advantages and disadvantages of shadow economy, the main methods for measuring the volume of shadow economy have been given. The following chapters of this study have been focused on the volume of shadow economy in Turkey. After stating pros and cons of the shadow economy, the effects of shadow economy on economic growth has been tried to determine by considering different economic variables. VI