Research by the Lithuanian Free Market Institute shows that the shadow economy in Lithuania is shrinking but remains widespread. More than a quarter of the country‘s economy remains in the shadow. It is the most common in the market for excisable goods: illegal alcohol constitutes 22% of the strong alcohol market, illegal cigarettes – 20%, and fuel – 15%.
In its fourth edition of “Shadow Economy in Lithuania” LFMI assesses the level of the country’s shadow economy in in 2015 and analyzes its key drivers. The Lithuanian Free Market Institute and partners investigated involvement and attitudes regarding the shadow economy in six countries: Lithuania, Latvia, Estonia, Poland, Sweden, and Belarus. Research partners include Dr. Friedrich Schneider, expert from Austria, Belarusian Institute for Strategic Studies (BISS), Civic Development Forum (FOR) in Poland, Mises Institute in Estonia, Timbro in Sweden and others.
Read the full publication in Lithuanian here.