The Concept of Digital Shadow Economy: Consumer's Attitude

Ligita Gaspareniene, Rita Remeikiene, Valentinas Navickas
2016 Procedia Economics and Finance  
The article covers a new topic in the sphere of digital shadow economy -consumers' attitudes towards this phenomenon. Increasing transfer of transactions to electronic space determines the growth of the number of illegal digital operators and promotes consumers' involvement in digital shadow trade. Scientific literature does not contain any universal definition of digital shadow economy. Hence, the variety of terms, interpretations and features relevant to this phenomenon is rather wide, which
more » ... rather wide, which determines the necessity to define the precise concept of digital shadow economy from the point of view of consumers as active participants in this field. This article is aimed at definition of the concept of digital shadow economy from consumers' position and identification of the measures would discourage potential consumers from participation in digital shadow economy. To increase the size of the survey sample, the method of "snowball" was engaged. The results of the research have revealed that consumers are inclined to distinguish criminal activities (drugs, prostitution, credential steals, etc.) from illegal economic activities, which also violate established legal norms and regulations. The participants of the survey perceive that the activities of digital shadow economy are performed exceptionally in electronic space without official registration of business and evading tax payment. Participation in digital shadow economy is voluntary and mutually beneficial to both transaction parties (a trader and a consumer). With reference to the results of consumers' evaluation, definition of digital shadow activities as illegal ones, development of the efficient legal framework, containing clearly established criminal and/or administrative responsibility for a consumer as a party of digital shadow transaction, public announcement and availability of the information on illegal e-traders in e-space, availability of appropriate protection software, more intensive supervision and control, establishment of e-police department and assurance of the sufficient number of supervising officers can be considered the most efficient measures of digital shadow economy prevention.
doi:10.1016/s2212-5671(16)30292-1 fatcat:gucx3kajtrfrxdikono5rz5j5q