Study Of Russia's Shadow Economy

Shadow economy is a phenomenon widely exists in the world, especially in Russia. By analyzing the shadow economy in Russia, this thesis attempted to understand Russia well and improve on our economic reform. The thesis includes 3 parts:The first part of the thesis is definition of shadow economy. Firstly, t he Shadow economy includes all economic actions that do not pay the tax, uncontrolled by government and are not brought into the GDP system. Secondly, analysis of the causation of shadow economy and its function mechanism. Lastly, explanation of the necessity of shadow economy in Russia.The second part, the specialty of shadow economy in Russia. Above all, No one knows the exact scale of shadow economy in Russia. In the second place, from politician, bureaucracies, entrepreneur to the common civilians, the shadow economy affects almost every fields of Russia economy.Finally, the causation of this phenomenon is special. Some economists think the high tax rate bring on the shadow economy, but, reducing tax rate did not reducing the scale of the shadow economy. The function of shadow economy is under dispute in Russia. The Russia shadow economy in form mainly includes gray economy, brown economy and black economy. In the course of reform, the country plays the leading role. On the one hand, Russia keeps many state-owned economies that can not limited by the economy and laws. The market reform reduces the standard of living of people so that people have to make a living by some illegal means. The last part is conclusion of this thesis.Like Russia, China is switching to a market economy so that shadow economy is inevitable, so that analyze of the Russian shadow economy may be helpful for China.