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The Grey Economy in ICT sector

Todor Yalamov, Coordinator, IT Group, ARC Fund

The Bulgarian and global development communities recognize information and communication technologies (ICT) as a powerful tool for economic and social development. The ICT sector has always been recognized as a top government priority, yet with variances in intensity and performance.

Despite this sector's importance to human development and economic growth, there is still inadequate statistical data and research available to policy makers in making informed policy decisions. One of the most serious challenges is the large perceived volume of unrecorded economic activity in the ICT sector.

The paper explores the boundaries of the ICT sector, defines various types of "shadow" activities, and summarizes available estimates on the size and trends of recorded, unrecorded and total economic activity in the sector.

The paper presents work in progress - preliminary results and hypothesis, and outlines a methodology for their testing.

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