SHADOW ECONOMY: EFFICIENCY AND RESILIENCY OF INFORMAL TRADING INDUSTRY OF NON CONVENTION SIZE SHIPS (NCSS) IN TAWI TAWI PROVINCE

Abstract

This study aims to investigate the efficiency and resiliency of the informal economy of trading industry of non convention size ships (NCSS) in Tawi Tawi Province. A Social Benefit Cost Analysis was undertaken to quantify the benefits and costs associated with the transactions of the market players of the industry which include vessel owners, traders, Bureau of Customs, Maritime, LGUs, Consumers and shadow authorities governing the informal trading of goods in the province in particular; and estimate the shadow economic contribution to ARMM economy in general. Findings revealed that NCSS informal trading are equally beneficial in terms of private and social profitability of industry players and consumers. This explains the shape of resiliency in the industry structure, conduct and performance of the NCSS informal
trading. The study further demonstrated that the shadow economic activity of NCSS industry is socially and economically beneficial in maintaining the balance of peace and resiliency of the population in the area; and the shadow industry contributed informally in the aggregate economic performance of the province.