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Estimation of Trends in Functioning of the Informal Entrepreneurship on the Basis of the Dynamic Model of Panel Dataset


Simutina N.L., Leventov N.N.
(about the authors)

Simutina Natalya Leonidovna – (Far-Eastern State Agrarian University)

Leventov Nikolay Nikolaevich – (Far-Eastern State Agrarian University)

Published in:
Shadow Economy
– Volume 3, Number 1 (January-March 2019)



Keywords: Dynamic Model, informal economy, informal entrepreneurship, Panel dataset, sole proprietors (individual entrepreneurs), the Russian Federation regions


Citation:
Simutina N.L., Leventov N.N. (2019). Estimation of Trends in Functioning of the Informal Entrepreneurship on the Basis of the Dynamic Model of Panel Dataset. Shadow Economy, 3(1), 49-65. doi: 10.18334/tek.3.1.39951


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Abstract:

The scientific entrepreneurship in the informal economy is increasing all over the world. But in Russia the study of this phenomenon is just beginning. The paper examines the informal entrepreneurship in the Russian Federation regions. People who are registered in the state register as sole proprietors (individual entrepreneurs) and receive income for their business activity are considered as being informal entrepreneurship. Sequence of estimation of trends in functioning of the informal entrepreneurship in the Russian Federation depending on economic factors and including 5 stages in offered. The estimation tool is author’s dynamic model using panel dataset. The indicators of 77 regions of the Russian Federation for the period of7 years were used for our calculations. On the basis of those calculations a number of conclusion were made. A traditional character of the established kinds of the employment in the individual entrepreneurship in the Russian Federation and inertness are confirmed statistically. The higher GDP per capita in the individual region the less is the number of individual entrepreneurship. In the opposite case, the entrepreneurs go to informal sector or go to the hired labour. People with low skills are absorbed by the informal sector without registration as individual entrepreneurs.








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