The Shadow Economy and Its Impact on National Competitiveness: The Case of Slovenia

• Authors: Hugo Zagoršek , Marko Jaklič , Aljaž Hribernik
• Languages of publication: EN

Abstracts

EN

The paper presents a socioeconomic analysis of the phenomena of informal economic activity. It is argued that the shadow economy has been beneficial for Slovenian society since the 19th century and has significantly contributed to the success of the Slovenian economy under the socialist regime. During Slovenia's transitional phase it has stimulated the formal economy, soothed social tensions and allowed export-oriented enterprises to remain internationally competitive by paying lower wages and obtaining cheaper inputs. However, it hinders innovation, impedes entrepreneurship and maintains the status quo, and thus represents an obstacle for future economic development in Slovenia.

Keywords

EN

shadow economy; Slovenia; competitiveness; socioeconomic analysis

• Publisher: Sciendo
• Journal: South East European Journal of Economics and Business
• Year: 2009
• Volume: 4
• Issue: 1
• Pages: 37-50

Dates

published

2009-04-01

online

2011-06-03

Contributors

author

Hugo Zagoršek

• Faculty of Economics, University of Ljubljana, Slovenia

author

Marko Jaklič

• Faculty of Economics, University of Ljubljana, Slovenia

author

Aljaž Hribernik

• Faculty of Economics, University of Ljubljana, Slovenia

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Identifiers

DOI

10.2478/v10033-009-0003-6