Measurement Of The Underground Economy In Jiangsu Province

The underground economy is a worldwide common phenomenon. It commonly exists in every country besides in every corner of society at present. Its structure is very complex. Some of them are legal while some of them are illegal. The existence of underground economy is beneficial in a sort of way. However some is badly harmful. Measurement of the scale of underground economy was studied by experts of western countries long ago. Measurement of underground economy also arouses a widespread concern of the experts in our country now. Because of the variety of underground economy patterns, there are many names and classifies to the underground economy. In this paper, the author discusses the definition & classification of underground economy, and then introduces the main theory and viewpoint of experts to underground economy studying. In the empirical analysis part, the author makes Jiangsu province as an example to discuss the suitable state quomodo of underground economy and analyzes the result to get the key factors of infecting the scale of the underground economy. At last, the author separately observes the impact of underground economy upon GDP, taxation and distribution of the income according to the result. Through them, the author discusses the concrete impact of underground economy, and then gives some suggestion against underground economy according to the result of analysis and the specific circumstance of Jiangsu province.