THE DEVELOPMENT OF SHADOW ECONOMY IN EU TRANSFORMING COUNTRIES

Informal and shadow economy attract growing attention. In general, this phenomenon is seen as a failure of the economy. Besides unethicality and immorality of activities conducted in this field of the economy it also represents an outflow of funds from national budgets of individual countries in the form of tax avoidances. Understanding the mechanisms of its functioning is needed in the process of searching for the tool for its elimination. Examination of the dependence between the development of the shadow economy and quantitative parameters of the economy, such as the tax and levy burden and unemployment rate, suggests that such matters should be viewed in a broader context. The development of the shadow economy is not just a matter of hard data but also the problem of moral actors economic relations.