Sie sind auf Seite 1von 7

WHAT IS A PARALLEL ECONOMY?

Feige: the hidden/parallel economy includes those activities that go unreported or are unmeasured by the societys current techniques for monitoring economic activity. Scneider & Enste: parallel economy includes all unregistered economic activities which contribute to the officially calculated GNP (Gross National Product).

Simply put, parallel economy often could be demonstrated as hidden economy of a country. People or business entities when do not show their exact income as per government Simply put, parallel economy often could be demonstrated as rules the income comes under parallel economy. hidden economy of a country. People or business entities when doThe informal economyincome as per government rules the not show their exact includes unreported income from income comes under parallel economy. the production of legal goods and services, either from as hidden economy of a country. People or business entities monetary show their exact income as all government when do notor barter transactions - henceper economic rules activities comes under parallel be taxable the income which would generallyeconomy. were they reportedput,the state (tax) authorities. In general, a precise Simply to parallel economy often could be demonstrated definition seems quite difficult as the informalbusiness entities as hidden economy of a country. People or economy when do not show their adjusts to changes in taxes, develops all the time andexact income as per government rules the from the tax authorities and to general moral sanctions income comes under parallel economy. attitudes.

Parallel economy exists due to various reasons and they are as follows: High tax rates implemented by the government. Complicated tax paying procedures and policies. People believe that their money is not going to be properly utilized by government as their trust on government is less. High inflation which puts tax payers under high tax paying brackets. People do not get enough return on their paid taxes. Involvement of government agencies and officials in corrupt practices. Insufficient laws and their implementation to counter such activities.

BLACK MARKET
The black market is a market where all commerce is conducted without regard to taxation, law or regulations of trade. It is generally smallest in countries where economic freedom is greatest, and becomes progressively larger in those areas where corruption, regulation, or legal monopolies restrict legitimate economic activity. Goods acquired illegally may be cheaper than legal market prices. The supplier does not have to pay for production costs or taxes. This is usually the case in the underground market for stolen goods. Criminals steal goods and sell them below the legal market price, but there is no receipt, guarantee, and so forth.

COMPONENTS OF A BLACK MARKET ECONOMY


ARMS & AMMUNITION DRUGS, ALCOHOL & TOBACCO CURRENCY EXCHANGE

CORRUPTION & BRIBERY

HAWALA

COPYRIGHTED MEDIA

BLACK ECONOMY

SWISS BANK ACCOUNTS

Main cause of parallel economy

Das könnte Ihnen auch gefallen