THE HIDE AND SHADOW ECONOMY IN UZBEKISTAN

Abstract

This article examines the current state and structural characteristics of the shadow economy in the Republic
of Uzbekistan within the context of ongoing economic reforms and institutional transformation. The shadow economy
is analyzed as a multifaceted phenomenon influenced by regulatory, fiscal, institutional, and socio-economic factors.
Particular attention is given to the scale of informal economic activities and their implications for economic growth, fiscal
sustainability, and social welfare. The study outlines and systematizes methodological approaches used to assess
the size and dynamics of the shadow sector, including indirect macroeconomic methods, indicator-based models, and
comparative analytical techniques applied in international practice. The advantages and limitations of these methods
are discussed in relation to data availability and the specific features of Uzbekistan’s economy. Based on the selected
methodological framework, the article evaluates recent trends in the shadow economy and identifies key drivers
contributing to its persistence. The findings highlight the role of tax policy, regulatory burden, labor market informality,
and institutional quality in shaping the scale of the shadow economy. The study also assesses the impact of government
measures aimed at reducing informality and improving economic transparency. The results of the research may be used
to support evidence-based policymaking, improve statistical measurement of informal activities, and develop targeted
strategies for the gradual legalization of economic activity in the Republic of Uzbekistan