Expert: Armenian share in shade economy in 2016 reached 30% or $3.1 bln

ArmInfo. Armenian share in  shadow economy  in 2016 was 29.8%, and the volume - $ 3.1 billion  with an annual decline of 11.6%. This is evidenced by the research of  the Caucasus Institute, published in the May 25 book by political  scientist Hrant Mikaelyan "Shadow Economy in Armenia".

According to the expert, shadow economy throughout the period of  Armenian  independence was pretty widespread, and at certain times  even surpassed the formal economy in size. Thus, according to his  estimates, the highest indicator of shadow was recorded in 1997 -  66.7%, after which the reduction from 2004-2013 was observed - from  50.4% to 40.5%, with the subsequent continuation of the decline to  29.8% % in 2016.

In this regard, Mikaelyan noted that there are a number of conditions  favorable for the shadow economy in Armenia, in particular the youth  of state institutions, poverty of the population, low salaries,  limited competition due to objective and subjective reasons, high  unemployment, as well as property stratification.

The expert sees the solution of the problem as a result of the  continuation of institutional development. "It is not the most  effective way to reduce the shadow, it is not the most effective way  to reduce the shade, it is possible to cut firewood, since the shadow  economy balances the current situation and is conditioned by the  objective development of economic and economic relations in society  and the state rooted in the socialist past," he said.

To note,The Shadow Economy in Armenia book  used sociological methods  of data collection, used the political theory of abnormality as a  phenomenon at the junction of politics and economy, and analyzed the  shadow economy as a macroeconomic phenomenon. The book will help  readers to see the features and patterns of the formation of a shadow  economy in Armenia, and practitioners to develop measures aimed at  reducing it. The study was conducted at the Caucasus Institute with  the support of the Swiss Academic Network of the Caucasus (ASCN) in  the framework of the study of informal economy and politics in  Armenia.