The Structure of Financial Flows in the Shadow Economy and Methods of Their Assessment

2018 ◽  
Vol 11 (5) ◽  
pp. 6-15 ◽  
Author(s):  
V. I. Avdiyskiy ◽  
V. M. Bezdenezhnykh
Keyword(s):  
Shadow Economy ◽  
Financial Flows

scholarly journals CURRENT STATE AND TRENDS OF THE SHADOW SECTOR OF THE ECONOMY I

2020 ◽  
Vol 3 (49) ◽  
pp. 47-54
Author(s):  
Inna Tiutiunyk ◽  
◽  
Andrii Zolkover ◽  
Oleksii Lyulyov ◽  
Serhii Lyeonov ◽  
...  
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Economic Development ◽  
Shadow Economy ◽  
Unified Approach ◽  
Financial Flows ◽  
Capital Outflow ◽  
Advantages And Disadvantages ◽  
Current Trends ◽  
Current State

Current trends in economic development of most countries highlight the need to improve existing tools for their economic growth and sustainable development. An important aspect in this direction is the implementation of the policy of de-shadowing of the economy. The article analyzes the current world trends in the functioning of the shadow economy, identifies the most common schemes of shadow capital withdrawal and approaches to their classification. The systematization of the existing methodical approaches to the assessment of the level of shadowing of the economy is carried out, their advantages and disadvantages are determined. The expediency of developing a unified approach to estimating the volume of shadow financial flows, which is based on taking into account the multi-channel schemes of shadow capital outflow, is substantiated.

scholarly journals Servicing of shadow economy: banking and parabanking systems

2020 ◽  
pp. 1-9
Author(s):  
Eka Ermakova
Keyword(s):  
Commercial Banks ◽  
Shadow Economy ◽  
Cost Effective ◽  
Federal State ◽  
Shadow Banking ◽  
Financial Flows ◽  
Analysis And Synthesis ◽  
Capital Outflows ◽  
Novel Coronavirus

The goal of this article consists in understanding of the role of banking and parabanking institutions in ensuring shadow capital flow. The object of this research is the financial flows that serve shadow economy. The subject of this research is the capital outflow through banking and parabanking systems, shady transactions of commercial banks, and structure of money turnover. Methodological framework is comprised of systemic and integrated approaches. The article also employs the general scientific methods (scientific abstraction, unity of historical and logical, analysis and synthesis, induction and deduction, methods of comparison and analogy), as well as special methods of cognition (monetary methods). Information database contains the official data of the Central Bank of the Russian Federation and Federal State Statistics Service. The following conclusions were formulated: 1) Policy of combating money laundering conducted by the Bank of Russia yields tangible results (significant reduction in the volume of shady operations; commercial banks fearing suspension or revocation of license are not interested in servicing such operations); 2) This leads to active development of more flexible, cost-effective, and uncontrolled by the Bank of Russia shadow banking (this is testified by the the growing role of the parabanking system in servicing of capital outflows), as well as of alternative financial instruments intended to conceal the affiliated entities and beneficiaries are gaining popularity (a number of cryptocurrencies); 3) Current situation (novel coronavirus pandemic, oil shocks) contributed to increase of the share of capital in circulation, which indicates the spread of shadow relations in the country. Therefore, the author underlines the need to ensure transparency of operations of parabanking institutions and their control by the state.

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.

THE EFFECT OF THE SHADOW ECONOMY ON THE UKRAINIAN ECONOMY’S CONDITION

2018 ◽  
Author(s):  
D.S. Zhmurko ◽  
A.O. Doroshenko ◽  
S.M. Babich
Keyword(s):  
Shadow Economy

Evaluation of shadow economy size in region

2015 ◽  
Vol 69 (1) ◽  
pp. 53-64
Author(s):  
Oleksiy Polovyan ◽  
Keyword(s):  
Shadow Economy

Well-being and inequality in comparative perspective: the case of Poland and Ukraine

2019 ◽  
pp. 32-55
Author(s):  
Natalia Kovalisko ◽  
Serhii Makeev
Keyword(s):  
Tax Evasion ◽  
Shadow Economy ◽  
Free Market ◽  
Well Being ◽  
Household Surveys ◽  
Cheap Labour ◽  
Catching Up ◽  
Public Opinion Polls ◽  
Opinion Polls

Socio-economic trajectories of Poland and Ukraine have been considerably diverging since the last decade of the 20th century. The former has been advancing and catching up with Western European countries in terms of the quality of life — whereas in Ukraine, the 1990s recession gave way to unsustainable economic growth, which interrupted in the second half of the 2000s and in the 2010s. The comparison of official statistics, along with the data of household surveys and public opinion polls, makes it possible to conclude that a progressive and sustainable transition from a command economy to free market, as exemplified by Poland, is accompanied by moderate deepening of economic inequality. However, an abnormal transition (deviating from the “Polish rule”) entails excessive concentration of wealth and gives rise to corruption as a mechanism of income redistribution among different categories of population. This also results in a more noticeable stratification of opportunies for meeting vital and existential needs. Owing to a large proportion of shadow economy and undeclared work, Ukrainians remain a source of cheap labour in both the domestic and international labour markets; in addition, a persistent subculture of tax evasion is being formed in this country.

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