2008 volume 26(2) pages 455 – 470

Cite as:
Burroni L, Crouch C, 2008, "The territorial governance of the shadow economy" Environment and Planning C: Government and Policy 26(2) 455 – 470

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The territorial governance of the shadow economy

Luigi Burroni, Colin Crouch

Received 12 July 2006; in revised form 21 December 2006; published online 7 November 2007

Abstract. The findings of studies of local economies can be applied to those concerned with ‘shadow’ and illegal activities. These activities need to be seen not as situations with an absence of governance and markets, but as constituting particular kinds of governance—this often being concerned with ensuring the functioning of markets. A scheme for modelling this type of governance is proposed, and is then used to formulate a critique of most of the prevailing policy approaches to trying to counter the shadow economy and to encourage the ‘emersion’ of firms from it. Some instances of policies that are better grounded in an appreciation of the reality of the shadow economy as a social order are also cited.

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