ABSTRACT
The shadow economy related to corrupt officials can thus be divided into two parts, each having its own characteristic ethnic feature. The Estonian officials take bribes, while Russian businessmen pay. Household economy emanates from an attempt by families to keep a decent income during a period of economic crisis and may consist of almost anything from home-knitting of blouses to various types of services. Concerning priority areas enumerated in the report it is thus with great probability the Estonians who predominantly take advantage of the possibilities in the shadow economy for earning extra private income. Concerning illegal trade with alcohol and tobacco one can quickly ascertain when staying in Estonia that mainly Western trademarks are being marketed. However, the fact that mainly Western trademarks are being marketed may suggest that it is also the Estonians who earn the profit by ‘importing’ such commodities, because Estonians generally have better contact with the West than Russians.
