The Connection between Smuggling with Investment in the Private Sector

Investment means a series of expenses that spent on increasing or the establishment of the real capital’s volume. Taking into account factors such as the difference between the national and international interest rates, different tax rates, inflation, etc. can have an effect on entering and exiting the capital. Also, with the huge existence of static and moving capitals in the country, the government can increase the expansion of domestic products by protecting the private sector. On the other hand, in case that there are obstacles in the way of domestic producers, the motives towards unofficial economy (smuggling, tax evasion, etc.,) will be provided in the country. The method of research in this article is descriptive-analytic and will be evaluated by using documents and library resources and bank statistics. The results of this article indicate that the government’s policies (taxes, inflation, interest rates, customs’ tariffs, etc.,) for the expansion or the reduction of unofficial activities which will have reverse effects on investment in the private sector plays an important role.