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Development and Testing of Methodologies for Assessing the Shadow Economy in the Vegetable, Fruit, and Berry Sectors, to Analyze the Impact of a 5% Reduced VAT Rate

Source of funding

Ministry of Agriculture

Scientific leader

Aleksejs Nipers

Duration

2021 - 2021

Budget

10 000 EUR

Project description

The project aims to develop a methodology for assessing the shadow economy in the vegetable, fruit, and berry sector for the period from 2020 to 2022. This task poses significant challenges for several reasons. First, the sector represents a small portion of the economy with relatively few market players, making it difficult to rely on general statistical data. Second, the evaluation focuses on past years, limiting the use of survey-based approaches due to the elapsed time, as retrospective surveys are not feasible.

The project's outcome will be a methodological framework designed to accurately track the dynamics of the shadow economy in this sector while addressing methodological and technical constraints. This initiative is essential to improve the understanding and monitoring of economic activities in the vegetable, fruit, and berry market, contributing to more effective policy development and economic governance in this area.