Novenkova A.Z.Published in:
Shadow Economy
– Volume 1, Number 2 (April-June 2017)



Keywords: bureaucracy, informal sector, mesoeconomic indicators, regional economy, rent-seeking behavior, socio-economic development of the region


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Abstract:

In the article we prove the dual effect of the shadow economy on the dynamics of aggregated indicators of regional socio-economic development. We also that prove that when the actors of the underground economic relations function primarily as institutional innovations, the mesoeconomic indicators are characterized by significant improvement (reduction of unemployment, capital inflows, increase in total expenditure etc.); when the actors of the underground economic relations function primarily as institutional competition and conservation, mesoeconomic indicators are characterized by a downward trend (increase in interregional differentiation, the outflow of highly skilled workers, reduction in private investment, reduction in budget revenues, etc.). This determines the need for legitimization of public administration on the basis of quality improvement and its orientation towards the legalization of informal institutions congruent with the institutional contour of the mesoeconomic system.

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