THE SHADOW ECONOMY AS A CONSEQUENCE OF THE ECONOMIC STRUCTU

Abstract

The modern world is painted with constant changes, and economic success lies in the ability of their understanding and optimal adjustment to the new business environment. The changes are not related to any specific point of the planet, but affect each count individually. The shadow economy as a result of social, cultural, economic and historical circumstances, is everywhere and affects almost every country. The high level of gray economy is a symptom of deeper disorders economic structure, weak law enforcement and poor functioning of institutions. Shadow economy represents a permanent form of economic activity which is parallel and in correlation with the formal economy. In this way, the gray economy most directly affect the present and future position of each individual, households, companies, nations and countries in the world. The gray economy is a result of social, cultural, economic and historical circumstances. It is injurious to both economic, and social character. The high level of gray economy is a symptom of deeper disorders economic structure, weak law enforcement and poor functioning of institutions.