Application of Eurostat Methods on Measuring of Non-Observed Economy for Estimation of Drug Business in GVA of Kazakhstan

Abstract

The paper is aimed at elaborating a methodology to estimate the volume of drug business and determination of its actual volumes in gross value added across Kazakhstan regions. The authors have analyzed an opportunity to apply the estimation methods for ille gal types of activity recommended by the Eurostat. A technique used in the work is based on the principles of the System of National Accounts. Analysis and estimation were implemented in view of widespread types of drugs in Kazakhstan listed by the law-enforcement and medical organizations. The work shows the calculation of diacetylmorphine consumption in Kazakhstan, volumes of import and domestic production, trade margin and value added tax of the activity related to distribution of narcotics. The calculations made for the work allowed estimating the volumes of drug business in the value added tax across Kazakhstan regions. The results of the conducted estimation show the tendency of general statistics of the national authorities of Kazakhstan acquiring the data on different fields of accounting of confiscated narcotics volumes and number of drug-dependents. The obtained data and approaches confirm an idea that for Kazakhstan it is reasonable to apply a tabular approach of Eurostat to estimate the volume of drug business and non-observed economy in whole that will allow determining possible volumes of drug business incomes penetration into the system of national accounts of the country. For practical application of the obtained results it is suggested to correct the system of acquisition and representation of statistical data across different national authorities and bring it over common standards.