The shadow economy: concept and evaluation

Abstract

Object: The article discusses the concepts, assessment, and reasons that affect the development of the shadow economy of Kazakhstan. In particular, the authors aim to propose mechanisms for limiting the shadow economy in the Republic of Kazakhstan based on theoretical justification of the reasons for the existence of the shadow economy. Methods: Based on the use of comparative and theoretical analysis, it is concluded that it is necessary to limit the shadow economy by improving the main directions from the point of view of the state legalization policy. The subject of the research is economic relations arising in the process of formation and development of the shadow sector of the economy in the Republic of Kazakhstan. Findings: In the proposed scientific article, the authors pay attention to the essence of the concept of the shadow economy, analyze the areas of development of shadow economic activity in Kazakhstan, and suggest the main directions for preventing the laundering of income from uncontrolled economic activities as a reduction of the shadow economy. Conclusions: Informal processes are clearly expressed in the economy of the Republic of Kazakhstan, especially in the sphere of construction, agriculture, trade and transport. One of the priorities of the state administration is to reduce the share of shadow business in the economy and transfer it to the «legal» mode of operation. The state policy of legalization is presented as a mechanism for reducing this, since these measures will transfer a significant part of the rent created in the society to the implementation of economic reforms in the state.