Shadow economy in Ukraine: causes, scale and consequences of development

Краус, Катерина Миколаївна and Краус, Наталія Миколаївна and Шевчук, Вероніка Сергіївна and Панченко, Анастасія Олександрівна (2020) Shadow economy in Ukraine: causes, scale and consequences of development Європейський науковий журнал Економічних та Фінансових інновацій, 1 (5). pp. 77-85. ISSN 2617-863X

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Abstract

The article examines a number of determinants of the emergence and “growth” of shadow economy in national system, namely: the crisis of financial system; inefficient functioning of organizational and institutional mechanisms of anti-corruption legislation and controlling bodies in the sphere of economic activity; spontaneous nature of market economy development: uneven development of different spheres, structures of economy and regions, inflationary processes; instability of tax legislation. The negative consequences of shadow economy functioning are analyzed, among which the unregulated development of the economy, reduced taxes, the possibility of rapid use of legalized funds in cases of difficult economic situations are mentioned. The components of shadow economy as a result of tax evasion in Ukraine are indicated. It is argued that the process of legalization of economic relations as relations that are objectively formed between people in the process of social production, distribution, exchange and consumption of goods, covers a wide range of issues and requires, above all, the formation of legal conditions, will allow all market participants to realize their own interests as much as possible, on the other hand – will make illegal or even illegal activities unprofitable. The article presents the content of methods for calculating level of shadow economy, which are used by experts in determining its volume. The level of shadow economy in Ukraine (% of GDP), by regions and sectors, has been determined. It is established that the largest level of shadow economy is the construction and retail sector (more than 50% of GDP). Authors express the opinion that among the negative socio-economic consequences of shadow economy is a decrease in revenue base of budgets at all levels due to non-payment of taxes, fines, fees; growing corruption in civil service and government; creation of disparities in structure of the economy; fictitious money and income from accumulation of fictitious non-cash funds have a negative impact on inflation; moral and physical “decomposition” of society.

Item Type: Article
Uncontrolled Keywords: shadow economy; shadowing of the economy; legalization of economic relations; de-shadowing
Subjects: Статті у журналах > Наукові (входять до інших наукометричних баз, крім перерахованих, мають ISSN, DOI, індекс цитування)
Divisions: Факультети > Факультет інформаційних технологій та управління > Кафедра управління
Depositing User: Катерина Миколаївна Краус
Date Deposited: 19 Nov 2020 08:42
Last Modified: 19 Nov 2020 08:42
URI: https://elibrary.kubg.edu.ua/id/eprint/32816

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