83rd International Atlantic Economic Conference

March 22 - 25, 2017 | Berlin, Germany

Shadow economy in a turbulent environment: Evidence from Poland

Thursday, 23 March 2017: 16:50
Bogdan Mroz, Ph.D. , Department of Management and Finance, Warsaw School of Economics, Warsaw, Poland
1. Objectives:

In economies in transition, such as Poland and other post-communist countries, the relevance of an informal economy is substantial. The basic objective of the paper will be the analysis of different faces and manifestations of unregistered economic activities in Poland in the recent years, based on diverse data sources including the latest research findings. The aim of the paper is also to provide an empirical picture and shed some light on the causes, dynamics and consequences of the existence and development of the informal sector in Poland.

 2. Data/Methods

The author draws upon the latest available research findings on the subject including the results of the comprehensive nationwide survey on unregistered economic activity in Poland conducted by the Polish Central Statistical Office. The author also presents and comments on the results of his own questionnaire research related to the topic of the paper conducted in recent years. They will be compared with findings of other research projects and available statistical data.

 3. Results/Expected results

The paper should provide an empirical insight into the functioning of the informal sector in Poland, highlight the reasons for involvement of economic agents in the new forms of the shadow economy, and identify factors conducive to the development of different forms of the informal economy as well as its economic and social implications. In the final section of the paper, the author discusses possible policy options referring to the shadow economy in Poland, taking into account the implications of the recent economic crisis. It seems that a shadow economy acts as a sort of a shock absorber, cushioning the frictions in the official sector of the economy and helping to cope with the effects of the economic crisis.