What is it about?
This paper explores the size of the informal economy in Bosnia and Herzegovina (BiH) over the period 1998-2016, based on an indirect method of measurement known as the MIMIC approach (Multiple Input Multiple Causes).
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Why is it important?
This study contributes to the existing literature by offering an estimate of the informal economy for BiH over the period of 1998-2016 based on the targeted MIMIC methodology, the most recent data and country-specific influences. Moreover, we provide a supplementary assessment of the undeclared work, tax morality and additional income of households in BiH coming from the informal economy. We use these accompanying indicators to check the consistency of results obtained through the preferred MIMIC approach, a method of estimation that has its own limitations.
Perspectives
The most recent data suggest that the informal economy in this country is around 30% of GDP, which signifies the importance of this issue to policy makers and a need for policies and strategies that will tackle this phenomenon.
Edin Pasovic
CISAR
Read the Original
This page is a summary of: Informal Economy in Bosnia and Herzegovina – An Empirical Investigation, South East European Journal of Economics and Business, December 2018, De Gruyter,
DOI: 10.2478/jeb-2018-0015.
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