Research Information System
AMEA İqtisadiyyat İnstitutu Milli İqtisadiyyatın Problemləri: Məqalələr Toplusu, vol.2, pp.43-55, 2007 (Peer-Reviewed Journal)
GUTMANN METHOD OF ESTIMATING OF HIDDEN ECONOMY AND APPLIED OPPORTUNITIES ON AZERBAIJAN REPUBLIC
It is estimated hidden economy of Azerbaijan by Gutmann method, one of the monetary approach methods in this article. The estimating is implemented in two variants. First variant on based to accept 1992’th year as “base year” and estimating results show that, hidden economy Azerbaijan has been 47.3 percent of official GDP in 2006 year and 53 percent on average 1991-2006 years. But second variant that on based to accept 1995’th year as “base year” show that hidden economy has been 16.3 percent and 35.1 percent respectively. We must note that about this estimating though this method is applied in most countries, has a number of insufficiencies too. But the most important insufficiency arising in the transition countries as Azerbaijan is assuming being of expanding of the hidden economy of the unique cause of the increment in the C/D relation. But, as showed professor Hanousek and Palda, hidden economy is not only factor of C/D relation in these countries. Other factors have been failures of bank sector, entering of the innovations to finance system quickly, unstable level of economic growth and inflation, directing of population to cash money connected with crisis and negative interest rates and changing of legislation on bank sector. We consider from this point of view that it is necessary these factors taking into account in future estimates of hidden economy of Azerbaijan Republic with purpose of to increase quality of estimating from monetary approach.