Informal sector of economy: notions, criteria, functions

Abstract

The article deals with the different scholars’ points of view concerning the notions and the functions of the informal sector of economy. The own classification of the functions of the economy informal sector that in comparison with the existing one gives the possibility to mention the other ones, social stimulating and ecological, has been proposed. It has been proved that in the process of each function realizing both positive and negative consequences can appear. The classification of the elements of the economy informal sector by using such criteria as the size of the enterprise and the number of people working there; the presence of registration; potential possibility of transforming informal relations in the formal ones; interdependency of the relations with the other sectors of economy has been made. It has been grounded that the most appropriate in connection with the state regulating is the influence on that part of the informal economy sector where there is the possibility to transform the informal relations into the formal ones.