In this section we will summarise the findings presented in the previous chapters on the key causes of the shadow economy in Serbia and the mechanisms that contribute to its development. We will also present the results of an estimate of the extent of the shadow economy in relation to GDP, estimates of various forms of the shadow economy in the sectors of businesses and entrepreneurs and their characteristics, and an estimate of the effects that formalising the shadow economy can have on the

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... ernment budget and economic growth. Finally, we will summarise findings that relate to the administrative and institutional capacity of government institutions tasked with overseeing the operation of business entities. Causes of the Shadow Economy Some of the fiscal causes of the shadow economy are the relatively high fiscal burden on labour, complex and expensive tax procedures, a complex and opaque tax system,