scholarly journals Shadow Economy: Causes and Ways to De-shadow Economic Processes

2020 ◽  
Vol 23 (1) ◽  
pp. 31-36
Author(s):  
Alina Bukhtiarova ◽  
◽  
Andrii Semenog ◽  
Alona Mykhalova ◽  
◽  
...  
Keyword(s):  
Shadow Economy ◽  
Economic Security ◽  
The State ◽  
Economic Effects ◽  
Political Support ◽  
Entrepreneurial Activity ◽  
Negative Consequences ◽  
The Sustainable Development ◽  
High Level ◽  
The Impact

Introduction. The spread of the shadow economy is a significant obstacle to the sustainable development of Ukraine’s economy and its entry into the world community. It negatively affects all economic processes. In Ukraine, the scale of the shadow economy has reached a critical level, so it is vital to find ways to minimize the shadow economy as essential prerequisites for increasing economic security of the state. Purpose. The purpose of the article is to discover the essence of the concept of the shadow economy, to find out the leading causes of the shadow economy and identify ways to de-shadow economic processes. Results. The article analyzes the approaches to the interpretation of the essence of the concept of the shadow economy on the basis of the analysis of the foreign researchers` scientific achievements. The characteristic of its constituent elements has been presented. It has been determined that the shadow economy can take the form of covert, informal and illegal. The level of the shadow economy in Ukraine has been considered. It has been substantiated that the shadow sector of the economy exists regardless of the level of development of the national economy. At the same time, in some countries, it has no significant impact on the economy (5-12% of GDP), and in others – has a detrimental effect on all socio-economic processes (over 30% of GDP). ). It has been emphasized that Ukraine belongs to the second group of countries with a high level of the shadow economy. Also, the main factors that lead to the formation of the shadow economy have been substantiated. Ways to overcome the shadow economy to strengthen Ukraine’s economic security have been proposed. Conclusions. To overcome the negative consequences of the process of shadowing the economy, it is necessary to develop and implement several measures to combat it. The state policy on the de-shadowing of Ukraine’s economy requires the development and application of a set of tools, assessment of the impact (social and economic effects) on the real and financial sectors of the economy, stimulation of entrepreneurial activity. An essential factor in the success of de-shadowing is political support for this complex process, a sequence of actions to reform society, avoid populism and punish irresponsible activities of officials, change the mentality of citizens towards awareness of civic position and involvement in the overall process.

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 FINANCIAL MONITORING AS A TOOL DESHADOWING BANKING SYSTEM

2019 ◽  
pp. 59-65
Author(s):  
A. Bukhtiarova ◽  
O. Tietierieva
Keyword(s):  
Economic Development ◽  
Money Laundering ◽  
Banking Sector ◽  
Shadow Economy ◽  
Banking System ◽  
Economic Security ◽  
The State ◽  
Negative Consequences ◽  
Financial Monitoring ◽  
The Impact

Today, the phenomenon of the shadow economy is widespread and has negative consequences for the economic development of the countries of the world. It is known that many factors influence the level of the shadow economy and one of these factors is money laundering. The purpose of the article is to analyze the primary and state financial monitoring as a tool for the unshadowing of the Ukrainian banking system. At the end of 2018, the Ministry of Economic Development, Trade and Agriculture of Ukraine is setting the level of the shadow economy at 30% of official GDP, the lowest in the last ten years. The authors investigate the impact of financial monitoring on the level of the shadow economy, identifying major threats to the country's economic security and analyzing the proportion of reports of suspicious transactions from banks in the overall message structure. It is found that about 99% of all reports to the State Financial Monitoring Service of Ukraine about suspected financial transactions come from banks. The essence of the primary financial monitoring, its main shortcomings are revealed, namely the imperfection of the legislative framework, the lack of highly qualified employees in the field of financial monitoring and the formation of clear requirements for the banks as the subjects of the primary financial monitoring. The contents of the most common money laundering schemes through the banking sector are disclosed, such as withdrawal of capital abroad, corruption schemes, schemes involving individuals, fraudulent transactions within the bank, counterfeiting of documents on the value of collateral or granting it, and falsification of the company's decision to obtain a loan. The article also reflects the main violations of banks in the field of financial monitoring for the years 2018-2019, analyzes the shortcomings of the state financial monitoring and proposes to improve the effectiveness of financial monitoring in banks in order to shade the banking sector. Keywords: unshadowing, banks, banking system, financial monitoring, money laundering.

scholarly journals Mathematical models of unshadowing the wages

2018 ◽  
pp. 19-26
Author(s):  
Olesia Martyniuk ◽  
Stepan Popina
Keyword(s):  
Mathematical Models ◽  
Shadow Economy ◽  
Economic Security ◽  
Sustainable Growth ◽  
Tax Rates ◽  
State Budget ◽  
Scientific Methods ◽  
High Level ◽  
Almost All ◽  
The Impact

The article addresses a social and economic phenomenon of shadow economy, which is typical for many countries and may result in a macroeconomic imbalance. The latter hinders the sustainable growth of the economy and leads to state budget losses. Shadow economy is penetrating into almost all sectors of the national economy. As shown in the paper, a high level of shadow economy is a threat to the national economic security of the country and a cause of declining its competitiveness. The findings confirm that measuring the impact of some factors of shadow economy on the economic security of the country is quite difficult. However, there are some factors for which mathematical models can be built to describe a correlation between economic indicators and a certain factor of shadow economy. Since salary expenses constitute a significant portion of enterprise’s basic expenses, it is important to build mathematical models for calculating the correlation between shadow salaries and tax rates. Thus, the purpose of the article is to examine mathematical models of the correlation between official and shadow salaries and tax rates. The developed mathematical models demonstrate that a reduction of tax rates is followed by changes in a shadow part of salaries. The article describes a number of cases when there are no changes in salaries and tax revenues, as well as cases of pay increase. The analysis finally suggests ways to increase salaries and techniques to de-shadow salaries. The authors use general scientific methods of generalization, comparison, analysis, and the method of mathematical modeling.

scholarly journals The Behavioral Approach to Ensuring Economic Security

2021 ◽  
Vol 5 (520) ◽  
pp. 385-389
Author(s):  
O. M. Matvieieva ◽  
◽  
O. M. Bondarenko ◽  
O. P. Duksenko ◽  
◽  
...  
Keyword(s):  
State Level ◽  
Economic Security ◽  
The State ◽  
Behavioral Approach ◽  
Negative Consequences ◽  
Managerial Decisions ◽  
Development Processes ◽  
State Region ◽  
A Chain ◽  
The Impact

The article is aimed at studying the behavioral approach to ensuring economic security during the development of the economy in the pandemic. The role and meaning of managerial decisions is defined, their ability to cause extraordinary reactions in the economic sphere is proved. A critical analysis of the essence of economic security of the State, region, enterprise is carried out. The subjects and objects of economic security of the State, region, enterprise are provided. The authors determine the factors of destabilization generated by the pandemic, which is the cause of emergence and development of crisis situations caused by threats to the economic security of the State, region, and enterprise. The scientific approach to ensuring economic security is presented in the statement that in the complex of measures that form the system of economic security of the State, region, enterprise, the system of prevention of emerging threats, taking into account the conditions of the pandemic, is of greatest importance. From the positions of economic security, it is important to assess and predict the impact of all expected threats, as well as economic and non-economic impacts on their course. It is noted that the strategic management of economic development processes in the pandemic causes an objective need on the part of the State authorities to have a concept of national security, the level of which depends on how effective managerial decisions are both at the enterprise level and at the State level; to what extent experts are able to avoid possible threats and eliminate the negative consequences of certain components of the external and internal environment in the pandemic. It is proved that a relatively insignificant influence of the behavioral approach in management is able to initiate a chain of profound changes in the economic system, and quite often with unpredictable consequences, which causes the need to expertise approved decisions for their economic security, while the powers of management bodies during the pandemic should be a continuation of their functional duties.

scholarly journals SHADOW ECONOMY AS A THREAT TO UKRAINIAN ECONOMY'S SECURITY: METHODS OF MEASUREMENT AND SCALE ASSESSMENT

2021 ◽  
pp. 22-30
Author(s):  
Tetiana Shepel ◽  
Hanna Kostovyat
Keyword(s):  
Shadow Economy ◽  
Negative Impact ◽  
State Level ◽  
Economic Security ◽  
The State ◽  
Estimation Methods ◽  
Public Authorities ◽  
Study Results ◽  
Mathematical Justification ◽  
The Impact

Purpose. The aim of the article is research of the essence of the shadow economy and assessment of the scale of the threat of shadowing the economy to the state's economic security. Methodology of research. The study uses methods of scientific generalization to clarify the content of the shadow economy, its features; logical methods made it possible in the conditions of incomplete initial information to determine the current state of national economic security and the dynamics of the shadow economy; the method of comparative analysis allowed us to assess the dynamics of the shadow economy. Findings. Five methods have been used to measure the impact of the shadow economy on economic security, based on a comparison of financial performance, service delivery, energy consumption, and economic financing. Based on four methods, the integrated indicator of the shadow economy was determined, which in 2020 amounted to 30%, which confirms the threatening impact of the shadow economy on the state's economic security. The direct relationship between the shadow economy and the integrated indicator of economic security is considered. The negative impact of the shadow economy on the state's economic security has been confirmed through the use of statistical methods. It is established that with the increase of the shadow economy, financial security weakens. It is concluded that at the state level, it is necessary to solve the most serious problems affecting the level of economic security of the state and not to formally fight against small entrepreneurs who provide self-employment and support the economy during the crisis. Originality. The study provides an economic and mathematical justification for the possibility of positioning the shadow economy as an integral indicator of the economic security of the state. It was proved for the first time that there is a close interrelation between the integrated indicator of the shadow economy and the integrated indicator of economic security of the state, which allows determining the formula for the level of economic security depending on the level of shadow economy with high probability (91%). Practical value. The study results allow statistical and analytical institutions to assess the state's economic security in accordance with the level of the shadow economy, reflecting the results of the analysis in the reports on the results of public authorities and the economy. Key words: shadow economy; economic security; economic freedom; level of the shadow economy; estimation methods.

Analysis of the state of the migration process of the ukrainian population in the context of domestic and international levels

2021 ◽  
Vol 72 (5) ◽  
pp. 110-118
Author(s):  
M. Shkurat ◽  
K. Pavlotska
Keyword(s):  
Social Protection ◽  
Negative Impact ◽  
Migration Policy ◽  
Cash Flows ◽  
The State ◽  
Negative Consequences ◽  
Migration Process ◽  
State Of The Economy ◽  
Migration Flows ◽  
High Level

Analysis of the migration process of the Ukrainian population, which takes place within the state and at the international level during 2014–2019 is carried out in this paper. On the basis of scientific works of domestic scientists and institutes the problems which have not been investigated, and also aspects which have been solved partially are defined. The negative consequences of the Ukrainian migration process on the state of the country are identified. The classification of migration flows of the Ukrainian population according to the reasons of movement is carried out. The main regions and countries which, as of the beginning of 2021, are more attractive to compatriots and are characterized by significant influxes of Ukrainians are identified. The main centers of departure – regions and countries – which are characterized by high level of outflow of Ukrainians are determined, the main problems and reasons that motivate the outflow of Ukrainians are highlighted in this paper. The level of growth of the Ukrainian population in terms of migration flows is defined. The investigation of Ukrainian diasporas, territorial location and analysis of their share in comparison is carried out. The main factors that force the Ukrainian population to move, which affects the demographic situation in Ukraine, the level of employment, as well as the amount of cash flows to the country and the state of the economy as a whole are identified. The main regulations and identified solutions to the migration flows of the domestic population, which were approved and implemented in the period from 2001 to 2019 are compared in this paper. On the basis of current and newly introduced strategies, critical analysis of the ways of regulating the migration process of the Ukrainian population is carried out, the main aspects and problems of the implemented migration policy of Ukraine are determined. The results of the work are to identify the main ways to reduce the negative impact of the migration process on the country's economy and related processes, and strategies to benefit from the movement of citizens of Ukraine, namely: introduction of intellectual security, revision of wages by region, stimulating the process of attracting technology in all spheres of activity and formation of the social protection system.

Accounting policy as a constituent of internal control and corporate economic security

2021 ◽  
Vol 17 (4) ◽  
pp. 664-681
Author(s):  
Yuliya N. STETSYUNICH ◽  
Andrei A. ZAITSEV
Keyword(s):  
Internal Control ◽  
Financial Management ◽  
Semantic Analysis ◽  
Economic Security ◽  
External Factors ◽  
Practical Significance ◽  
Negative Consequences ◽  
Internal And External Factors ◽  
The Impact ◽  
Accounting Policy

Subject. The article discusses the consistency of accounting policies, internal control and constituents of corporate economic security. Objectives. The study determines the process of articulating the term Accounting Policy at the legislative and normative levels nationwide and worldwide. We compare our own interpretations of corporate economic security. The article traces the impact of the accounting policy on areas of internal control and corporate economic securities. Methods. The study is based on general methods of research, such as the dialectical method, methods of analysis and synthesis, induction and deduction, and semantic analysis. Results. The article shows the impact of internal and external factors, which also influence corporate economic security and translate into the formation of corporate accounting policies. Conclusions and Relevance. Economic security is an aspect that every entity pursues. Therefore, it is important to thoroughly study how clauses of accounting policies influence the aspect from perspectives of business entities. The impact of constituents of corporate accounting policies, as evaluated herein, allow to consider adverse factors and help prevent negative consequences that internal and external factors may cause to corporate economic security. The findings contribute to accounting techniques for financial management in order to ensure the economic security. They are of practical significance for business leaders and financial personnel.

scholarly journals The Impact of Ad-Blocking on the Sustainable Development of the Digital Advertising Ecosystem

2018 ◽  
Vol 10 (11) ◽  
pp. 4039 ◽  
Author(s):  
Janusz Wielki ◽  
Janusz Grabara
Keyword(s):  
Sustainable Development ◽  
Point Of View ◽  
Economic Effects ◽  
Primary Data ◽  
Literature Analysis ◽  
The Sustainable Development ◽  
Advertising Industry ◽  
Internet Users ◽  
The Impact ◽  
Excessive Number

Despite the rapidly growing expenditure on digital advertising, the effectiveness of the functioning of the digital advertising ecosystem is becoming less and less visible. This is related to the fact that only a small part of the expenditure incurred by organizations on various forms of digital advertising brings the expected results. For several years now, a phenomenon that stifles the effectiveness of the digital advertising ecosystem and deteriorates the ROI (return on investment) of advertisers has been the widespread practice of blocking advertising, known as ad-blocking. In this context, the aim of this article is to analyze the scale of the phenomenon of ad-blocking and its causes in terms of its impact on the effectiveness of the functioning of the digital advertising ecosystem and its sustainable development, which is extremely important from the point of view of the development of electronic commerce. In order to carry out this study, a literature analysis was conducted on the genesis of this phenomenon, its scale, causes, and economic effects. After this stage of research, in order to obtain primary data, a questionnaire survey was conducted on a group of individual Internet users. The results of the research indicated three main reasons for the development of ad-blocking. These are: excessive number of advertisements, their excessive invasiveness, and the mismatch between the advertisements displayed to the user and the user’s interests. In the context of these results and of the continued sustainable functioning of the digital advertising ecosystem, it is essential that the advertising industry be able to offer users alternatives to ad-blocking that they consider valuable from their own point of view and that take the users’ expectations into account.

scholarly journals Warlords, the United States, and the state of anarchy in Afghanistan

2021 ◽  
Vol 6 (2) ◽  
Author(s):  
Ahmad Shah Azami
Keyword(s):  
United States ◽  
The United States ◽  
State Building ◽  
The State ◽  
Negative Consequences ◽  
Human Rights Abuses ◽  
Illegal Mining ◽  
The Us ◽  
The Government ◽  
The Impact

As part of its “War on Terror”, the United States (US) provided immense sums of money and advanced equipment to Afghan warlords in order to defeat and dismantle the Taliban and al-Qaeda in Afghanistan. Nearly two decades after the 2001 US-led intervention in Afghanistan that toppled the Taliban regime, the US continues supporting the warlords in various ways. As the intervention was also aimed at establishing a functioning state and reconstruction of the war-torn country, the US needed the support of local warlords to achieve its goals. However, over time, warlords and warlordism became a major challenge to the postTaliban state-building project and in many ways undermined the overall security and the state monopoly on violence. These warlords, who had been mostly expelled and defeated by the Taliban regime, returned under the aegis of the B52 bombers, recaptured parts of the country and reestablished their fiefdoms with US support and resources. They not only resist giving up the power and prestige they have accumulated over the past few years, but also hamper the effort to improve governance and enact necessary reforms in the country. In addition, many of them run their private militias and have been accused of serious human rights abuses as well as drug trafficking, arms smuggling, illegal mining and extortion in the areas under their control or influence. In many ways, they challenge the government authority and have become a major hurdle to the country’s emerging from lawlessness and anarchy. This paper explores the emergence and reemergence of warlords in Afghanistan as well as the evolution of chaos and anarchy in the country, especially after the US-led intervention of late 2001. It also analyzes the impact of the post-9/11 US support to Afghan warlords and its negative consequences for the overall stability and the US-led state-building process in Afghanistan.

Economic expertise as a tool to counter the shadow economy

2021 ◽  
pp. 131-136
Author(s):  
С.В. Банк ◽  
В.Ф. Вакуленко
Keyword(s):  
Shadow Economy ◽  
Negative Impact ◽  
Economic Security ◽  
The State ◽  
Large Percentage ◽  
Economic Situation ◽  
Public Finances ◽  
Economic Relations ◽  
Current State ◽  
Almost All

Теневая экономика проникает практически во все экономические сферы жизнедеятельности общества. Она включает в себя различные экономические отношения, которые находятся за рамками закона в областях производства, потребления, обмена и распределения. Воспрепятствование теневой экономике, предстающей одной из базовых угроз экономической безопасности страны, есть необычайно актуальное явление в настоящее время. Современное состояние сектора теневой экономики в России весьма динамично развивается, что влечет за собой негативное воздействие на социально-экономическое положение государства. В основном, это относится к представителям малого и среднего бизнеса, который занимается предоставлением услуг и производством разнообразных товаров. Актуальность избранной тематики заключается в том, что сейчас в России большой процент теневых доходов, тогда, как эти деньги могли быть направлены на становление и развитие МСП, особенно во времена обостренной пандемии, что позволило бы минимизировать экономическую напряженность и нарастить результативность государственных финансов. The shadow economy penetrates almost all economic spheres of society. It includes various economic relations that are outside the scope of the law in the areas of production, consumption, exchange and distribution. The obstruction of the shadow economy, which appears to be one of the basic threats to the economic security of the country, is an extremely relevant phenomenon at the present time. The current state of the shadow economy sector in Russia is developing very dynamically, which entails a negative impact on the socio-economic situation of the state. This mainly applies to representatives of small and medium-sized businesses that provide services and produce a variety of goods. The relevance of the chosen topic lies in the fact that now there is a large percentage of shadow income in Russia, while this money could be used for the formation and development of SMEs, especially during times of an acute pandemic, which would minimize economic tension and increase the effectiveness of public finances.

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