Research on the Proportion of Underground Economy in China Based on NIPA Measurement

Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 23 May 2019

Research on the Proportion of Underground Economy in China Based on NIPA Measurement

Yusu Qin, Zican Ren, Xuefan Wang

Chongqing University of Science and Technology, China

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Pages: 281-289

Keywords: Underground Economy, Interaction Theory, NIPA Measurement


William White, in his book The Street Society deeply analyzes the unique social functions of illegal groups in the Clairville community. This social result based on interaction networks causes the illegal economy to attach it and nourish it. The Chinese society, which also has a network that emphasizes interaction, has a huge underground economy that affects our understanding of actual economic data. This paper provides a macro estimate of the proportion of China's underground economy to GDP in China and its regions through the NIPA (National Income and Products Account) assessment method for countries with economies in transition. The results show that the proportion of China's underground economy continues to rise, but the growth rate is declining year by year. The overall proportion is not high, but the regional differences are obvious. Individual provinces, municipalities, autonomous regions have shown a unique trend and need to be treated differently


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