On November 15, 2018, the Lithuanian Free Market Institute (LFMI) held a conference on the shadow economy in Vilnius to address the scope and drivers of the shadow economy in Lithuania and across Europe and to discuss the most effective policies in tackling the issue.
The shadow economy in Lithuania remains pervasive despite economic growth, and as many as one in two people would consider informal consumption and undeclared work if their financial circumstances worsened, shows a LFMI research report.
The aim of the publication Shadow Economy: Understanding Drivers, Reducing Incentives is to present and analyse the results of representative population surveys into public perceptions of the shadow economy and engagement in illicit activities that were conducted in six countries.
After three years of decline, illegal trade in alcohol is on the increase, shows a research by the Lithuanian Free Market Institute (LFMI). According to LFMI, this year the shadow economy occupied 24% of the spirits market in Lithuania, representing an increase by two-percentage points since 2015.
The objective of the study “The Seen and the Unseen Effects of the Entry of Modern Retail1 in Bulgaria: Facts Against Myths” is to examine a number of popular claims that have been circulating in the media, and public debates. They often become grounds for political action and even legislative initiatives against modern retail formats.
The European Commission has launched a legislative initiative on cash payment restrictions aimed at exploring the rationale for the introduction of upper limits on cash transactions. LFMI presents its position on the issue of restricting cash payments as a measure to fight against criminal activity, terrorism and the shadow economy.
A multitude of research shows that the shadow economy in Lithuania is decreasing. Yet, the pace of change is not as fast as desired. The level of the shadow economy remains high and there are still plenty of reasons for this kind of economic activity to emerge.
We are delighted to present you the 3rd issue of “4liberty.eu Review” devoted to the shadow economy in CEE. Read the editorial below and preview the magazine on Issuu. Enjoy!
The goal of the project was to unfold and analyze the composition, causes and consequences of the shadow economies in Lithuania, Latvia, Estonia, Poland, Sweden and Belarus and to draw policy recommendations for tackling the shadow economies in the respective countries.
Cash payment restrictions would increase individual and corporate expenses and would cause payment inconveniences. How would one be expected to make larger payments at weekends when interbank transfers are not made? A forced „banking“ of cash reduces competition among payments methods.
