Open AccessSHADOW ECONOMY AND REGIONAL DEVELOPMENT – AN ARGUMENT IN FAVOR OF FISCAL DECENTRALIZATION
Author(s) -
Stefan Petranov
Publication year - 2021
Publication title -
trakia journal of sciences
Language(s) - English
Resource type - Journals
eISSN - 1313-3551
pISSN - 1312-1723
DOI - 10.15547/tjs.2021.s.01.009
Subject(s) - decentralization , shadow (psychology) , phenomenon , argument (complex analysis) , economics , morality , economic system , economy , market economy , political science , psychology , biochemistry , chemistry , physics , quantum mechanics , law , psychotherapist
The article discusses the regional aspects of the shadow economy in Bulgaria. The main factors that generate motivation for shadow practices are considered and it is concluded that they operate mainly at the national level. It follows that measures to limit and prevent this phenomenon should be primarily national. However, the article argues that regional policies can also be used in this regard. A moderate fiscal decentralization can help to increase the tax morality which is one of the most slowly changing and most intractable factors generating motivation for the implementation of shadow practices. It is also argued that fiscal decentralization in Bulgaria has the potential to improve other aspects of the economic system.