The Connection between Corruption and the Underground Economy- An Obstacle on Innovation and Development of the Business Environment

Maria Nitu
Dorel Paraschiv
Mihaela-Sorina Dumitrescu
Iulia Oana Florea
JEL codes: 
D7 - Analysis of Collective Decision-Making, D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption, E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment, E26 - Informal Economy; Underground Economy.
This article presents the two phenomena of economic financial crime: corruption and the underground economy, which have managed to expend internationally. The current context has allowed the emergence and the development of this phenomena into the society, the public sector and the business environment that generates a decrease of investments, innovation and research at national, European level. In this article we have presented some elements of the literature review on corruption and on the underground economy, as well as the direct and strong connection between the two and the impact of corruption and the underground economy in the innovation and development of the business environment at the level of the European Union. The research methodology used in the elaboration of this article was the qualitative method.
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