Exploring Shadow Economy and the Risk of Poverty in Polish Regions
Purpose: The aim of the research was to indicate the correlation between poverty risk index and the level of shadow economy in Polish regions. The research was conducted taking into consideration 2022. MIMIC approach was employed to set up the level of shadow economy, latent variable was clarified based upon observed factors. Spearman correlation index was used to find out the relationship between analysed categories. Based on the result 0,684, it should have been assumed that there is a high positive correlation between the poverty risk index and the level of the shadow economy in Polish regions. Design/Methodology/Approach: The consideration formed the basis for the formulation of the research hypothesis: There is a relationship between the level of shadow economy and risk of poverty. To verify such a hypothesis, the results of own calculations were used. Findings: The results of the research showed the existence of significant relationships between the selected characteristics that determine appropriate attitudes toward unemployment and the development of the shadow economy. Practical Implications: The obtained research results are of particular importance for the development of appropriate tools towards the shadow economy. The indication of guidelines that may change this state of affairs and the developed research allowed us to identify areas of influence and meet the requirements of regional competitiveness. Originality/value: The obtained research results showed which conditions are most conducive to predicting shadow economy processes. The results obtained will allow public administration to focus on these elements in order to achieve better results in combating the sources of the shadow economy.