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Bringing the underground economy into the official economy through financial channels

Year: 2025

Type: article

Abstract: This article explores financial mechanisms as a strategic tool for integrating the underground economy intothe formal economic system. The informal or shadow economy, although frequently viewed negatively, constitutes asubstantial portion of economic activity particularly in developing countries. Integrating these unregulated sectors viafinancial instruments such as digital banking, tax incentives, mobile payment platforms, and inclusive financial regulationscan enhance national productivity, increase tax revenue, and promote financial stability. The study examines internationalbest practices and innovative policy approaches to bringing unregistered economic actors into the formal financiallandscape.

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.15553817

Authors: Koshanov Abdimurat Azat uli, Erkinbaeva Shaxnoza

Language: English

Topic: Taxation and Compliance Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W6930757134

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