Digital Shadow Economy – Literature Review

Dan-Andrei Coca; Andreea Nistor

doi:10.18662/wlc2021/13

Dan-Andrei Coca PhD Student, Ștefan cel Mare University, Suceava
Andreea Nistor PhD Student, Ștefan cel Mare University of Suceava

DOI: https://doi.org/10.18662/wlc2021/13

Keywords: Digital shadow economy, digital shadow trade, electronic transactions, illegal e-business, illegal e-traders, shadow economy

Abstract

The virtual environment is a phenomenon that has grown exponentially in recent years, changing the way the economy evolves. Through e-commerce, social media platforms, online stores, or websites, financial resources are rolled both legally and illegally. Thus, some transactions are not accounted for or taxed, and also the concept of the digital shadow economy, defined as economic shadow activities conducted in electronic space, with no physical contact is increasingly present today. This paper aims to review and systematically analyze, through bibliometric analysis, using the Web of Science scientific platform and the VOSviewer software, the notion of digital shadow economy, determining the current state of knowledge in the field. Also, a comparative research was performed between digital shadow economy and the traditional shadow economy. The main findings reveal that digital shadow economy has a novelty character that refers to an economy based on digitized services and products, which escapes the official estimates of the GDP and the main research tendencies concern the conceptualization of the term and its main activity channels, aspects that distinguish it from traditional shadow economy. Furthermore, a thematic cluster, containing links to the digital shadow economy term can be noticed to be around cybercrimes.

References

Abramowicz, W., Stolarski, P., Filipowska, A., Perkowski, B., & Węcel, K. (2011). System for Detection of Illegal Drugs E-Trading. Legal Knowledge and Information Systems, 235, 163-164. https://doi.org/10.3233/978-1-60750-981-3-163

Ahmad, N. A. (2008). Dead men working: Time and Space in London’s (`Illegal’) Migrant Economy. Work, Employment and Society, 22(2), 301–318. https://doi.org/10.1177/0950017008089106

Akintoye, K. A., & Araoye, O. E. (2011). Combating E-Fraud on Electronic Payment System. International Journal of Computer, 25(8), 48–53. https://doi.org/10.5120/3048-4144

Amasiatu, C. V., & Shah, M. H. (2014). First Party Fraud: A Review of the Forms and Motives of Fraudulent Consumer Behaviours in E-Tailing. International Journal of Retail & Distribution Management, 42(9), 805–817. https://doi.org/10.1108/IJRDM-05-2013-0112

Blackledge, J. M., & Coyle, E. (2010). PrE-Fraud Prevention Based on the Self-Authentication of e-Documents. In L. Berntzen, F. Bodendorf, E. Lawrence,& M. Perry (Eds.), 2010 Fourth International Conference on Digital Society (329–338). IEEE. https://doi.org/10.1109/ICDS.2010.66

Brynjolfsson, E., & Kahin, B. (2000). Introduction, in Understanding the Digital Economy. MIT Press, Cambridge.

Camarero, C., Anton, C., & Rodriguez, J. (2014). Technological and Ethical Antecedents of E-Book Piracy and Price Acceptance: Evidence from the Spanish Case. The Electronic Library, 32(4), 542–566. https://doi.org/10.1108/EL-11-2012-0149

Cassel, D. & Caspers, A. (1984). Ce este economia ascunsă? Conceptul și manifestările celei de-a doua economii [What is the hidden economy? The concept and manifestations of the second economy]. Studii economice [Economic Studies] 1, 1-7.

Elmasry, T., Benni, E., Patel, J., & Moore, J. P. (2016). Digital Middle East: Transforming the Region into a Leading Digital Economy. McKinsey & Company.

Europol. (2011). Cybercrime as a Business: The digital underground economy [Press Releases]. https://www.europol.europa.eu/media-press/newsroom/news/cybercrime-business-digital-underground-economy

Feige, E. F., & Urban, I. (2008). Measuring Underground (Unobserved, Non-Observed, Unrecorded) Economies in Transition Countries: Can We Trust GDP? Journal of Comparative Economics 36(2), 287-306. https://doi.org/10.1016/j.jce.2008.02.003

Gasparėnienė, L., Bilan, Y., Remeikienė, R., Ginevičius, R., & Čepel, M. (2017). The Methodology of Digital Shadow Economy Estimation. Ekonomie 20(4), 20–33. https://doi.org/10.15240/tul/001/2017-4-002

Gasparėnienė, L., Remeikienė, R,. Ginevičius, R., & Schieg, M. (2018). Adoption of MIMIC Model for Estimation of Digital Shadow Economy. Technological and Economic Development of Economy 24(4), 1453–1465. https://doi.org/10.3846/20294913.2017.1342287

Gaspareniene, L., Remeikiene R, Ginevicius, R., & Skuka, A. (2016). Critical Attitude towards the Theory of Digital Shadow Economy: Literature Review and New Foundations. Terra Economicus 14(4), 156-172. file:///C:/Users/User/Downloads/critical-attitude-towards-the-theory-of-digital-shadow-economy-literature-review-and-new-foundations.pdf

Gaspareniene, L., Remeikiene, R. & Ginevičius R. (2018). Attitudes of European Consumers Towards Digital Shadow Economy: Lithuanian and Spanish cases. Acta Polytechnica Hungarica, 15(4), 121-142. https://doi.org/10.12700/APH.15.4.2018.4.7

Gaspareniene, L., Remeikiene, R. & Navickas, V. (2016). The Concept of Digital Shadow Economy: Consumer’s Attitude. Procedia Economics and Finance, 39, 502-509 https://doi.org/10.1016/S2212-5671(16)30292-1

Gasparėnienė, L., Remeikienė, R., Sadeckas, A., & Ginevičius R. (2016). Level and Sectors of Digital Shadow Economy: the Case of Lithuania. Entrepreneurship and sustainability issues, 4(2), 183-197 https://doi.org/10.9770/jesi.2016.4.2(6)

Gaspareniene, L., & Remeikiene, R. (2015). Digital Shadow Economy: a Critical Review of the Literature. Mediterranean Journal of Social Science, 6(6), 402–409. https://doi.org/10.5901/ajis.2015.v4n3s1p653

Gaspareniene, L., & Remeikiene, R. (2016). Economic and Demographic Characteristics of the Subjects, Operating in Digital Shadow Economy. Procedia Economics and Finance, 39, 840–848. https://doi.org/10.1016/S2212-5671(16)30253-2

Gaspareniene, L., & Remeikiene, R. (2016). Shadow Economy Estimation Methods: Digital Shadow Economy Assessment Aspect. In Business and Management 2016 : The 9th International Scientific Conference (329–338). Vilnius Gediminas Technical University. https://doi.org/10.3846/bm.2016.34

Gaspareniene, L., & Remeikiene, R. (2016). The Methodologies of Shadow Economy Estimation in the World and in Lithuania: Whether the Criterions Fixing Digital Shadow are Included?. Procedia Economics and Finance, 1, 753–760. https://doi.org/10.1016/S2212-5671(16)30277-5

Hafezieh, N., Akhavan, P., & Eshraghian, F. (2011). Exploration of Process and Competitive Factors of Entrepreneurship in Digital Space: A Multiple Case Study in Iran. Education, Business and Society. Contemporary Middle Eastern Issues, 4(4), 267–279, https://doi.org/10.1108/17537981111190051

Harris, L. C., & Reynolds, K. L. (2003). The Consequences of Dysfunctional Customer Behavior. Journal of Service Research, 6(2), 144–161. https://doi.org/10.1177/1094670503257044

Herley C., & Florêncio D. (2010). Nobody Sells Gold for the Price of Silver: Dishonesty, Uncertainty and the Underground Economy. In: T. Moore, D. Pym, C. Ioannidis, (eds.) Economics of Information Security and Privacy (pp. 33-53). Springer

Higgins, G. E. (2007). Digital Piracy, Self-Control Theory, and Rational Choice: An Examination of the Role of Value. International Journal of Cyber Criminology, 1(1), 33–55. https://doi.org/10.5281/zenodo.18277

Hill, C. W. L. (2007). Digital Piracy Causes, Consequences and Strategic Responses. Asia Pacific Journal of Management, 24(1), 9–25. https://doi.org/10.1007/s10490-006-9025-0

Levi, M., & Williams, M. L. (2013). Multi-Agency Partnerships in Cybercrime Reduction: Mapping the UK Information Assurance Network Cooperation Space. Information Management & Computer Security, 21(5), 420–443. https://doi.org/10.1108/IMCS-04-2013-0027

Margherio, L., Henry, D., Cooke, S., & Montes, S. (1999). The Emerging Digital Economy. Department of Commerce.

Mello, J. P. (2013). Cybercrime Fuelled by Mature Digital Underground. Identity & Access.

Mesenbourg, T. L. (2001). Measuring the Digital Economy. US Bureau of the Census.

Nechaev, V.I., & Mikhailushkin, P.V. (2011). The Economic Dictionary: Reference Edition. Krasnodar.

Remeikiene, R., Gaspareniene, L., & Schneider, F.G. (2018). The Definition of Digital Shadow Economy. Technological and Economic Development of Economy, 24(2), 696-717. https://doi.org/10.3846/20294913.2016.1266530

Schneider, F., & Williams, C. C. (2013). The Shadow Economy. The Institute of Economic Affairs.

Smith, P. (1994). Assessing the Size of the Underground Economy: The Canadian Statistical Perspectives. Ottawa: Statistics Canada, 28, 2-23. https://publications.gc.ca/Collection/Statcan/13-604-M/13-604-MIB1994028.pdf

Tapscott, D. (1996). The Digital Economy: Promise and Peril in the Age of Networked Intelligence. McGraw-Hill.

Taylor, S. A. (2012). Evaluating Digital Piracy Intentions on Behaviors. Journal of Services Marketing, 26(7), 472–483. https://doi.org/10.1108/08876041211266404

Thomas, R., & Martin, J. (2006). The Underground Economy: Priceless. The USENIX Magazine, 31(6), 7–16. https://www.usenix.org/system/files/login/articles/822/cymru.pdf

Vlachos, V., Minou, M., Assimakopouos, V., & Toska, A. (2011). The Landscape of Cybercrime in Greece. Information Management & Computer Security, 19(2), 113–123. https://doi.org/10.1108/09685221111143051

Williams, C. C., & Nadin, S. (2012). Tackling the Hidden Enterprise Culture: Government Policies to Support the Formalization of Informal Entrepreneurship. Entrepreneurship & Regional Development, 24(9-10), 895-915. https://doi.org/10.2139/ssrn.2289947

Williams, P., Nicholas, D., & Rowlands, I. (2010). The attitudes and behaviours of illegal downloaders. Aslib Proceedings, 62(3), 283–301. https://doi.org/10.1108/00012531011046916

Yip, M., Shadbolt, N., Tiropanis, N., & Webber, C. (2012). The Digital Underground Economy: A Social Network Approach to Understanding Cybercrime. Digital Futures 2012: The Third Annual Digital Economy All Hands Conference.

Yu, C., Young, M. L., & Ju, B. C. (2015). Consumer Software Piracy in Virtual Communities: An Integrative Model of Heroism and Social Exchange. Internet Research, 25(2), 317–334. https://doi.org/10.1108/IntR-08-2013-0187