METHODOLOGICAL APPROACHES TO THE ECONOMETRIC ASSESSMENT OF LOCAL BUDGET REVENUE GROWTH THROUGH THE LEGALIZATION OF THE SHADOW ECONOMY
Keywords:
shadow economy, legalization, local budget revenuesAbstract
This article develops a methodological framework for measuring how the legalization of informal economic activity affects the growth of local budget revenues in Uzbekistan under rapidly changing digital, tax, and payment institutions. The study combines recent national reforms affecting individual entrepreneurs, self-employed persons, platform-based transactions, and non-cash payments with an econometric logic that links formalization intensity, turnover visibility, and tax mobilization at the territorial level. It is argued that legalization produces not only a direct tax effect through newly declared turnover, but also a secondary fiscal effect through improved payment traceability, lower compliance costs, wider administrative observability, and stronger alignment between economic circulation and local revenue collection.
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