The Impact of the Shadow Economy on Economic Development: International Experience and Lessons for Uzbekistan

Abstract

The shadow economy refers to economic activities that are not included in official statistics, significantly affecting the state budget, labor market, and investment environment. This article analyzes the impact of the shadow economy on various countries’ economies based on international experience and derives key lessons for Uzbekistan. The research employs analytical, comparative, and statistical methods. The findings suggest that digitalization, tax simplification, and strengthening social protection are effective measures to reduce the shadow economy. The study compares data from multiple countries.