scholarly journals METHODOLOGICAL TOOLS FOR THE STUDY OF THE INFLUENCE OF SHADOW FINANCIAL TRANSACTIONS ON THE DEVELOPMENT OF THE NATIONAL ECONOMY

2020 ◽  
pp. 141-146
Author(s):  
A. Kuznietsova ◽  
V. Bozhenko
Keyword(s):  
Economic Development ◽  
Comparative Analysis ◽  
Public Debt ◽  
Financial Stability ◽  
Shadow Economy ◽  
Negative Impact ◽  
State Regulation ◽  
Financial Flows ◽  
Financial Transactions ◽  
The Impact

Concealment of income and tax evasion is currently a global problem. The globalization of the economy and the liberalization of the international cash flow take shadow financial flows beyond individual countries, giving them global significance. The article is devoted to the study of the impact of the shadow economy on the indicators of the economic development of the country. The paper hypothesizes the impact of shadow activities at all stages of the resources' production and redistribution, financial stability, and independence of the country, the budget revenues. The article presents a comparative analysis of the dynamics of indicators of the country's economic development and the level of shadowing of the economy. The choice of indicators of economic development of the country substantiates the feasibility of using the Maastricht criteria as target indicators of development of candidate countries for EU accession, which include inflation, interest rates, public debt, budget deficits, and exchange rates. Based on the comparative analysis, it was concluded that there is no direct relationship between the level of the shadow economy and the amount of public debt, the budget deficit, the hryvnia exchange rate against the US dollar, and the discount rate. At the same time, the negative impact of the shadow economy on inflation in the country was confirmed. In the paper, multiple regression coefficients which confirmed the conclusions made at the level of statistical significance of 5% were determined. The paper proves the negative impact of shadow financial transactions on the level of the country's GDP. It is concluded that it is expedient to revise the existing key vectors of the state policy to combat shadowing and the tools of state regulation of the economy by influencing the most sensitive to changes in the level of shadowing indicators of economic development. It is substantiated that the correspondence of the vector of state influence on the economic development of the country to the realities of the functioning of the official and shadow sectors of the economy is a driving force capable of influencing the efficiency and effectiveness of public administration processes.

scholarly journals THE INFLUENCE OF THE SHADOW ECONOMY ON THE SOCIO-ECONOMIC DEVELOPMENT OF UKRAINE

2021 ◽  
Author(s):  
Yuliia Romanovska ◽  
Lily Strapachuk
Keyword(s):  
Economic Development ◽  
Shadow Economy ◽  
Negative Impact ◽  
Economic Security ◽  
The State ◽  
State Budget ◽  
Socio Economic Development ◽  
High Inflation ◽  
High Level ◽  
The Impact

The article considers the approaches to the interpretation of the category "shadow economy", which causes a variety of approaches to assessing the impact of the shadow economy on the socio-economic development of Ukraine. The spread of the pandemic and the complication of economic conditions, formed as a result of the introduction of forced restrictive measures, have led to the growth of the shadow economy in Ukraine. The index of shadowing of the economic sphere in relation to the inflation index and the level of the state budget deficit has been studied. The factors that led to the shadowing of the economy and caused the growth of the share of the shadow sector in the economy of Ukraine are highlighted. The main components of shadow employment are identified. Business entities operating in the shadow sector have significantly more competitive advantages and much higher efficiency than legally operating businesses. As a result, such enterprises are an obstacle to the flow of funds to the budgets of all levels of the country, and as a consequence, have a negative impact on socio-economic development in general. In recent years, state budget expenditures have been growing too slowly, which indicates a high level of shadowing of the economy in conditions of high inflation and, consequently, negatively affects the socio-economic security of society. Budget expenditures are closely linked to public policy, which allows the state to curb the level of economic shadowing through measures to reform relevant areas. It is investigated that the State budget expenditures grow too slowly, which indicates a high level of shadowing of the economy in conditions of high inflation. The paper substantiates the reasons for the growth of the shadow economy and identifies the main measures to reduce shadow employment, the manifestations of which are the deformation of social and economic institutions of the state. The de-shadowing of the economy provides citizens with the right to social protection, in the form of social guarantees in case of unemployment, temporary incapacity for work, accidents or occupational diseases during official work, pensions, etc.

scholarly journals The Impact of Public Debt in Economic Growth

2020 ◽  
Vol 9 (4) ◽  
pp. 177
Author(s):  
Ariana Xhemajli Selimaj ◽  
Bedri Statovci ◽  
Alma Shehu Lokaj ◽  
Ermira Beqiri
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Public Debt ◽  
Financial Stability ◽  
Positive Impact ◽  
Debt Management ◽  
Public Expenditures ◽  
Economic Growth Rate ◽  
The Impact

Different countries around the world, in addition to collecting public revenues as sources to cover public expenditures, also need other sources of funding, because frequently, most countries cannot generate sufficient budgetary revenue to afford all the budget expenditures. This is one of the reasons why public debt is created. There is always debate among economists as to what the optimal percentage of public debt should be so as not to impede the economic development of a country. To avoid impediments to economic development, then public debt management needs to be done properly so that it is earmarked for adequate projects that will contribute to economic growth and development. In this paper, we will analyse the impact of public debt on economic growth. Kosovo serves as our case study for the period 2009-2016, where remittances, exports, increase of average payments and subsidies were considered as other influencing factors. The prudent use of public debt, such as in various investments, job creation, and productivity growth, can all contribute to economic growth and financial stability. Otherwise, misuse of public debt will inadvertently affect the country’s destabilization, create an inflationary situation, and will only continue to increase liabilities to lenders – essentially, it will have no positive impact on the country. Reckless use of public debt will have a direct effect on lowering the economic growth rate.

scholarly journals Public Debt and Economic Growth in the European Union. Empirical Investigation

2021 ◽  
Vol 18 ◽  
pp. 199-208
Author(s):  
Piotr Misztal
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Economic Development ◽  
Public Debt ◽  
Budget Deficit ◽  
Negative Impact ◽  
Foreign Debt ◽  
Budget Deficits ◽  
The European Union ◽  
The Impact

The relatively high sizes of public debts in many of the world's member states have led to frequentdebates concerning the influence of public debt on economic growth. Analyzing economic literature it can beseen, that theoretical and empirical considerations on this topic are divided into three main parties. The firstpart of analyzes is the work of the Keynesians, which emphasizes that the budget deficit as well as the publicdebt positively affects the economic development of the country, mainly through the impact of the budgetexpenditure multiplier. The opposite view on budget deficits and public debt is represented by the neoclassicalschool, who argue that the budget deficit and public debt can have negative impact on economic growth.Conversely, proponents of the Ricardian equivalence concept believe that budget deficits and public debt areneutral for economic growth. These three mentioned above approaches to the budget deficit and public debtproblem have led to many debates at home and abroad about the importance of budget deficit and public debt inthe process of economic growth and economic development of the country. The main objective of the study isto determine the impact of the foreign debt and home debt on economic activity of the country, based on theexample of the 27 member countries of the European Union (without United Kingdom) in the period 2006-2017. The statistics came from the European Statistical Office (Eurostat) and International Monetary Funddatabase (World Economic Outlook).

Financial Systems and economic Development in the Russian Regions: A Comparative Analysis

2015 ◽  
pp. 94-108 ◽  
Author(s):  
K. Krinichansky
Keyword(s):  
Economic Development ◽  
Comparative Analysis ◽  
Financial Development ◽  
Public Debt ◽  
Fixed Capital ◽  
Russian Regions ◽  
Growth Mechanisms ◽  
Financial Systems ◽  
Debt Market ◽  
Regions Of Russia

The paper identifies and assesses the closeness of the connection between incremental indicators of the financial development in the regions of Russia with the incremental regional GDP and the investment in fixed capital. It is shown that the positioning of the region as an independent participant of public debt market matters: the regional GDP and investment in fixed capital grow more rapidly in the regions which are regularly borrowing on the sub-federal bonds market. The paper also demonstrates that the poorly developed financial system in some regions have caused the imperfection of the growth mechanisms since the economy is not able to use the financial system’s functions.

IMPACT OF GOVERNMENT DEBT ON FINANCIAL SECURITY OF UKRAINE

2017 ◽  
Author(s):  
Olena Pikaliuk ◽  
◽  
Dmitry Kovalenko ◽  
Keyword(s):  
Economic Development ◽  
Public Debt ◽  
Positive Impact ◽  
The State ◽  
Financial Security ◽  
State Budget ◽  
The Public ◽  
Debt Security ◽  
The Stability ◽  
The Impact

One of the main criteria for economic development is the size of the public debt and its dynamics. The article considers the impact of public debt on the financial security of Ukraine. The views of scientists on the essence of public debt and financial security of the state are substantiated. An analysis of the dynamics and structure of public debt of Ukraine for 2014-2019. It is proved that one of the main criteria for economic development is the size of public debt and its dynamics. State budget deficit, attracting and using loans to cover it have led to the formation and significant growth of public debt in Ukraine. The volume of public debt indicates an increase in the debt security of the state, which is a component of financial security. Therefore, the issue of the impact of public debt on the financial security of Ukraine is becoming increasingly relevant. The constant growth and large amounts of debt make it necessary to study it, which will have a positive impact on economic processes that will ensure the stability of the financial system and enhance its security.

Effect of international labor mobility on social-economic development of countries

2021 ◽  
pp. 54-59
Author(s):  
E.I. Huseinova ◽  
Keyword(s):  
Economic Development ◽  
Social Economic ◽  
Negative Impact ◽  
Research Work ◽  
Practical Significance ◽  
Problem Solution ◽  
International Mobility ◽  
Labor Resources ◽  
Social Economic Development ◽  
The Impact

The goal of the research is the specification of the effect of international mobility of labor resources on the social-economic development of a country, as well as the impact on the GDP volume. The main purpose set in the investigation is the study of international experience of the problem solution. Another goal of the research work is the international mobility of labor resources in conditions of national economy. The methods of analysis, grouping and analogy were used in the investigation. In the research work carried out by the author, the properties of international mobility of labor resources were commented, the factors and reasons of their occurrence specified as well. The analysis has been conducted and the system of effect mobility of labor resources on GDP growth in some countries and their impact on the state of labor market developed. Due to the research surveys, the reasons for development of international mobility of labor resources and direction of labor migration streams in Azerbaijan have been identified. The impact of international mobility of labor resources on social-economic development has been evaluated. Positive and negative impact of international mobility of labor resources on social-economic development of Azerbaijan, as well as setting measures on migrant admission as contributing country in case of negative effect have been specified in the innovation of research. Practical significance of the investigation lies in the regulation of international mobility of labor resources, introduction with experience of difference countries by the system of statistical figures and formation of their resources, grouping and using the data for problem solution in our country.

scholarly journals The Impact of Public Debt on the Economic Growth of Jordan: An Empirical Study (2000- 2015)

2017 ◽  
Vol 6 (2) ◽  
pp. 114 ◽  
Author(s):  
Tawfiq Ahmad Mousa ◽  
Abudallah. M. LShawareh
Keyword(s):  
Economic Growth ◽  
Empirical Study ◽  
Regression Model ◽  
Least Squares ◽  
Public Debt ◽  
Least Squares Method ◽  
Negative Impact ◽  
External Debt ◽  
Using Data ◽  
The Impact

In the last two decades, Jordan’s economy has been relied on public debt in order to enhance the economic growth. As such, an understanding  of the dynamics between public debt and economic growth is very important in addressing the obstacles to economic growth. The study investigates the impact of public debt on economic growth using data from 2000 to 2015. The study employs least squares method and regression model to capture the impact of public debt on economic growth. The results of the analysis indicate that there is a negative impact of total public debt, especially the external debt on economic growth. 

scholarly journals THE IMPACT OF TAX GAPS ON THE FINANCIAL AND ECONOMIC SECURITY OF THE COUNTRY

2021 ◽  
Author(s):  
Inna Tiutiunyk ◽  
Julia Belous
Keyword(s):  
Sustainable Development ◽  
Economic Development ◽  
Tax Evasion ◽  
Negative Impact ◽  
Economic Security ◽  
Financial Policy ◽  
Important Place ◽  
Complex Concept ◽  
Tax Revenues ◽  
The Impact

Trends in the development of the main components of financial and economic security of the country indicate their significant variability and dependence on a combination of internal and external factors. An important place among the drivers of influence on the level of financial and economic security is occupied by tax revenues. Given the prolonged national and transnational market turbulence, which is observed in most sectors of the economy, one of the biggest threats to the financial and economic security of most countries is the presence of a significant volume of shadow operations. The consequences of their implementation are the lack of tax revenues in the budget and the reduction of the country's financial viability in financing economic development programs. The purpose of the article is to study the impact of tax gaps on the level of financial and economic security of the country. In the paper, the essence of the financial and economic security of the country, which is proposed to be understood as a complex concept, integrates the features of economic and financial development of the economic system. Based on the systematization of scientific literatures, the main tasks and functions of financial and economic security of the country including realization of goals and objectives of financial policy and formation of favorable conditions for economically sustainable development and growth, highlights the characteristics of this concept are substantiated. The paper identifies three characteristic features of the financial and economic security of the country: as an indicator of its ability to protect the interests of society in a volatile external and internal environment; economically sustainable development and growth; leveling threats to the internal and external environment. The role of tax gaps in reducing the level of financial and economic security of the country is substantiated, the probability of formation of tax gaps in the economy is predicted, measures to minimize tax evasion as components of increasing its financial and economic security are proposed. The established interdependencies should serve as a basis for the transformation of state economic and financial policy in Ukraine in terms of minimizing the negative impact of the shadow sector of the economy on the indicators of economic development of the state.

scholarly journals Econometric models for estimating current and forecast values of the level of human capital development in the Russian economy

2020 ◽  
Vol 26 (1) ◽  
pp. 52-67
Author(s):  
Nina Baranova ◽  
Sergey Larin ◽  
Evgeny Khrustalyov
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Negative Impact ◽  
Import Substitution ◽  
Econometric Models ◽  
Practical Significance ◽  
Human Capital Development ◽  
Russian Economy ◽  
Capital Development ◽  
The Impact

Studies of factors of sustainable economic development in modern conditions are highly relevant for Russia due to the constant increase and tightening of sanctions restrictions. They have a negative impact on the introduction of innovative developments and economic growth, and reduce the competitiveness of Russian enterprises and their products on world markets. Human capital can become one of the key factors for countering sanctions restrictions, improving the efficiency of economic development and gaining additional competitive advantages for domestic enterprises and the economy as a whole. Assessing the impact of human capital on the sustainable development of the economy is difficult, since it is one of the specific forms of capital. When making appropriate measurements, economic scientists rely on a number of developed theoretical methods and practical tools that support them, which allow us to obtain fairly accurate values of the human capital development index (HDI) based on statistical data. First of all, this is the current UN methodology for calculating the HDI indicator, as well as modern software systems OriginPro-8.6 and Eviews-10.0, which have sufficiently advanced functionality for performing calculations. Russia today has all the necessary prerequisites and opportunities for progressive social and economic development. However, the formation of econometric models will help to timely determine the current and forecast values of the level of human capital development for individual enterprises, industries, and the country’s economy as a whole. This paper shows the practical application of the econometric tools of all the above approaches to obtain the calculated values of the HDI indicator for different time periods and different scenarios for the development of the Russian economy. The results obtained confirmed the high practical significance of the tools used and the acceptable accuracy of the calculations. However, the current and forecast values of the level of human capital development alone will not be able to ensure the effective development of the Russian economy. On the contrary, the effective use of human capital in the implementation of import substitution strategies and national projects will allow our country to become one of the world’s leading economic development countries.

scholarly journals Aid, Governance and Public Finance Fraud: Evidence from Angola

Politeja ◽  
2020 ◽  
Vol 17 (6(69)) ◽  
pp. 19-50
Author(s):  
Weronika J. Krawczyk
Keyword(s):  
Public Finance ◽  
Natural Resources ◽  
Negative Impact ◽  
Political Corruption ◽  
Economic Benefits ◽  
Academic Community ◽  
Development Aid ◽  
Financial Flows ◽  
Ruling Elites ◽  
The Impact

This article examines the process of public finance fraud leading to unjust enrichment of ruling elites in Angola, a resource-rich, yet ironically povertytrapped country, owing to decades of rule of José Eduardo dos Santos. It analyses the phenomenon of political corruption in the Angolan context, translating into mismanagement of public revenues coming from natural resources as a means of attaining private economic benefits and consolidating power. Moreover, by examining cross-border inter-company networks aimed at concealing public assets behind front companies, the author attempts to establish a connection between corruption and illicit financial flows. Ultimately, since political corruption is intrinsically linked to governance, the article looks at the impact of the latter on social development as well as on the effectiveness of development aid granted to Angola. It was written based on secondary resources including existing literature and material evidence. Its findings and conclusions correspond with the overall theory postulated by the academic community, maintaining that natural resources and aid have negative impact on governance, institutional accountability, and in consequence on human development, especially in countries characterised by despotic rule.

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