“This paper examines the nature and estimates the magnitude of the second economy in Tanzania to establish the extent to which official national accounts misstate actual or real production of goods and services. Section II sets up the conceptual framework and defines the concepts, and in Section III recent developments in the major components of the second economy are discussed. In Section IV, model specification and empirical results on the size of the second economy are presented and analysed and the conclusions is presented in Section IV. In this paper the second economy is defined broadly to include all economic activities usually falling outside government benefits and regulations.”
