Trends in Applied Sciences Research1819-35792151-7908Science International10.3923/tasr.2007.365.373GrigoryanArman A.5200725This study discusses various factors that have contributed to the development of the shadow economy in Armenia. The main causes for the existence of the shadow economy are argued to be the tight and unfair tax administration and regulations and the corruption. Many of the shadow activities in Armenia relate to the problem of non-reporting and/or under reporting by business entities. There is a significant amount of economic activities that are not captured by the official statistics.]]>Kohonen, T.,20013rd Edn.,pp: 245-280pp: 245-280Anonymous,20032003Anonymous,2004Anonymous,2004pp: 27pp: 27Eilat, Y. and C. Zinnes,2002Feige, E.,1990189891002Johnson, S., D. Kaufman and A. Shleifer,199728159240Kaufman, D. and A. Kaiberda,19961996Park, T.,19791979