The Scale Estimation and Economic Effects Analysis of Underground Economy in Shallow Seam Mining Area

In the shallow coal seam mining area, the main form of underground economy is illegal mining of coal and underground finance. Taking a typical county as example, the paper estimated the scale of its underground economy using the micro-payments method and then analyzed its economic effects from the perspective of official GDP, revenue, income distribution and resource allocation. At last came to the conclusion: although the relative amount of the country's underground economy declined, the absolute amount had been increasing year by year and reached a large scale, which hindered and confined the formal economic development, making the deficit to expand, resulting in a waste of limited resources, and long-term impact on the expansion of the income gap.