<abstract xml:lang="en" xmlns="http://www.w3.org/1999/xhtml"><p>The paper presents a socioeconomic analysis of the phenomena of informal economic activity. It is argued that the shadow economy has been beneficial for Slovenian society since the 19th century and has significantly contributed to the success of the Slovenian economy under the socialist regime. During Slovenia's transitional phase it has stimulated the formal economy, soothed social tensions and allowed export-oriented enterprises to remain internationally competitive by paying lower wages and obtaining cheaper inputs. However, it hinders innovation, impedes entrepreneurship and maintains the status quo, and thus represents an obstacle for future economic development in Slovenia.</p></abstract>

The paper presents a socioeconomic analysis of the phenomena of informal economic activity. It is argued that the shadow economy has been beneficial for Slovenian society since the 19th century and has significantly contributed to the success of the Slovenian economy under the socialist regime. During Slovenia's transitional phase it has stimulated the formal economy, soothed social tensions and allowed export-oriented enterprises to remain internationally competitive by paying lower wages and obtaining cheaper inputs. However, it hinders innovation, impedes entrepreneurship and maintains the status quo, and thus represents an obstacle for future economic development in Slovenia.

The Shadow Economy and Its Impact on National Competitiveness: The Case of Slovenia

Faculty of Economics, University of Ljubljana, Slovenia

South East European Journal of Economics and Business

The paper presents a socioeconomic analysis of the phenomena of informal economic activity. It is argued that the shadow economy has been beneficial for...

The Shadow Economy and Its Impact on National Competitiveness: The Case of Slovenia

Published Online: Jun 03, 2011

Page range: 37 - 50

DOI: https://doi.org/10.2478/v10033-009-0003-6

Keywords
shadow economy, Slovenia, competitiveness, socioeconomic analysis

This content is open access.

The Shadow Economy and Its Impact on National Competitiveness: The Case of Slovenia

Published Online: Jun 03, 2011

Page range: 37 - 50

DOI: https://doi.org/10.2478/v10033-009-0003-6

Keywordsshadow economy, Slovenia, competitiveness, socioeconomic analysis

This content is open access.

Keywords
shadow economy, Slovenia, competitiveness, socioeconomic analysis