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1. Regulatory Burden: High levels of regulation and bureaucracy can drive businesses and individuals to operate informally to avoid compliance costs and restrictions. 2. Taxation:
1. Regulatory Burden: High levels of regulation and bureaucracy can drive businesses and individuals to operate informally to avoid compliance costs and restrictions. 2. Taxation: High tax rates and complex tax systems often lead to tax evasion, pushing economic activities underground. 3. Economic Conditions: Poor economic conditions and high unemployment rates can force individuals to seek income through informal means. 4. Social and Cultural Factors: Cultural attitudes towards informal work and distrust in government institutions can also contribute to the prevalence of the shadow economy. 5. Legal and Institutional Framework: Weak legal systems and inadequate enforcement of property rights and contracts can drive economic activities into the shadow economy. summarize
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