The size and development of the shadow economies of Ukraine and six other eastern countries over the period of 1999 – 2015

Abstract

Estimations of the size of the shadow economies of Ukraine, Armenia, Kazakhstan, the Kyrgyz Republic, the Russian Federation, Tajikistan and Turkey are presented over the period from 1999 to 2015. According to the author's estimation the average size of the shadow economy (in 1999 – 2015) was 44.6 % in Ukraine, 42.3 % in Armenia, 35.8 % in Kazakhstan, 37.4 % in the Kyrgyz Republic, 39.7 % in the Russian Federation, 41.5 % in Tajikistan and 30.1 % in Turkey. The author has proved that an increase in the burden of indirect taxation, the unemployment rate and corruption and less business freedom are the driving forces of the shadow economies of these countries.