Underground Economy Empirical Analysis And Management Countermeasures

Underground economy is a special economic phenomenon coming into being under the circumstances of market economy . Confirmed by the research of UN corresponding departments, it exists in almost all the countries. Evading taxes for reasons and sheltering form the government supervision in diverse ways, it seriously ruins the market mechanism and national economic plan, besides it disturbs the reasonable allocation of social resources and stability of social economic order, therefore it distintegrates the economic and industrial structure of the whole nation. No doubt the deeper analysis and research on underground economy are of great important, theoretically and practically. First, the concept of UE is introduced. Then the characteristics of it, is invisibility, ambiguity, fluctuation, slope in distributing profits and corruptibility, are analyzed. What' s more, the features of UE with Chinese characteristics are illustrated, which refer to inclusiveness, following, a large proportion of countries and farmers, wavelike development and change, combination of illegal and criminal activities and profiting oneself at the expense of others. Then, the causes of UE in our country are analyzed with the factors of economy, regulation and culture, every one of which is dissected specifically. The key of this dissertation comes followingly, that is the research on the conceect evidence of UE. Because UE is so inclusive in our country only eleven main UE activities are illustrated, and they are manufacturing and selling of fake commodities, smuggling, operators private economy, corruption, civil loan and underground economy in finance. In addition, the occurring and present situation of UE are analyzed rather specifically with plenty, rich and concert examples. At the end, the dissertation is concerned with how to reinforce the management of UE. The analysis is carried out form two angles. One is macroscopic management including strengthening the management on economic activities, intervening effectively, supervising and guiding, monitoring and pre-warning, stipulating industrial policy agreeing with Chinese situation, cheesing financial policy in accordance with our country, establishing and improving the social secrity system, fighting resolutely against the local protectrism. The other is microscopic managing strategies, that is governing the fake commodities and the UE in the countryside and farmers, reinforcing the levying and managing of taxes, strengthening the management of personal income sources and cash.