Shadow economy interconnection with maritime sector development in coastal European countries

In this article, the authors analyze the interconnection between shadow economy and maritime sector development in coastal European countries. The article provides scientific analysis review of shadow economy and maritime sector, their importance and interconnection; and also examines the current trends of shadow economy and maritime sector in the selected countries. Additionally, the authors raise the hypothesis about the interconnectivity of shadow economy and maritime sector development, which are later tested using the regression model (based on the MIMIC methodology). Models aim to distinguish the relationship between shadow economy and the factors which impacts maritime sector development. The research results show that there is a significant relationship between shadow economy and main maritime sector impacts factors. During the research, the authors have identified that an increase of production value (operating profit), personnel costs and the number of employees in the companies operating in the maritime industry, will lead to decrease of shadow economy in coastal European countries. Furthermore, shadow economy decreases as weight handled in these countries’ ports increases. On the other hand, the research findings show that as the number of companies operating in the maritime industry and their turnover increase, the shadow economy could increase as well.