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TO PAY OR NOT TO PAY/ A BUSINESS PERSPECTIVE OF INFORMA...

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To Pay or Not to Pay/ A Business Perspective of Informality in Kosovo

36 pages, pdf
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To Pay or Not to Pay/ A Business Perspective of Informality in Kosovo

Publisher: Institute for Development Research (RIINVEST), Kosovo

Volume: 36 pages, pdf

Description

Informality is a widespread global phenomenon that has become a feature of societies in both developed and less developed countries. Yet, despite its global reach, and despite the negative effects it might have, it is a term that still causes a lot of disagreement – disagreement regarding its definition, its classification and its measurement. This study seeks to offer a general picture of the informality in Kosovo; its size, determinants and the potential economic consequences it may cause. In this study, informality is defined as a phenomenon that describes all legal economic activities occurring hidden from the state and ignoring state regulations. As such, it includes phenomena such as tax evasion, informal employment and under-declaration of salaries.