Evaluation of the shadow economy influencing factors: Lithuanian case

摘要

The aim of the article is to evaluate the factors that influenced the scope of shadow economy in Lithuania during the period of 2000 - 2011. The theoretical solutions provided in the scientific literature revealed the scope of shadow economy is mainly influenced by the factors of political and economic environment. Applying the methods of regression and multiregression, the factors that have the biggest influence on the scope of shadow economy in Lithuania have been evaluated. The results of the empirical research have revealed that crediting of private sector and business freedom index are the most influential factors in this respect. Calculated negative values propose that more flexible crediting policies as well as creation of business-favourable conditions would have the negative impact on the scope of shadow economy in Lithuania. Apart from the most influential factors mentioned above, it has been established that the situation in the labour market and the volumes of international trade also have a significant influence on the scope of shadow economy in Lithuania. Thus, the government of the country should focus on such aspects as improvement of labour market conditions and promotion of international trade with appropriate measures.