{"id":14314,"date":"2020-11-20T12:00:12","date_gmt":"2020-11-20T10:00:12","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=14314"},"modified":"2020-11-20T01:45:39","modified_gmt":"2020-11-19T23:45:39","slug":"shadow-economy-causes-and-ways","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/shadow-economy-causes-and-ways\/","title":{"rendered":"Bukhtiarova A., Semenog A., Mykhalova A. Shadow Economy: Causes and Ways to De-shadow Economic Processes"},"content":{"rendered":"

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JEL Classification<\/strong>: O17<\/em>
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V23(2020)-05<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Bukhtiarova Alina<\/strong>, PhD in Economics, Associate Professor, Associate Professor of the Department of Finance, Banking and Insurance, Sumy State University, Sumy, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-2631-3323<\/a>
\ne-mail:<\/strong> \u0430.bukhtiyarova@uabs.sumdu.edu.ua<\/a><\/p>\n

Semenog Andrii<\/strong>, PhD in Economics, Associate Professor, Associate Professor of the Department of Finance, Banking and Insurance, Sumy State University, Sumy, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-3222-9574<\/a>
\ne-mail:<\/strong> a.semenoh@uabs.sumdu.edu.ua<\/a><\/p>\n

Mykhalova Alona<\/strong>, Master student of the Department of Finance, Banking and Insurance, Sumy State University, Sumy, Ukraine<\/p>\n

e-mail:<\/strong> alionaverkhoglyad02@gmail.com<\/a><\/p>\n

 <\/p>\n

Shadow Economy: Causes and Ways to De-shadow Economic Processes<\/h2>\n

 <\/p>\n

Annotation. Introduction<\/strong>. The spread of the shadow economy is a significant obstacle to the sustainable development of Ukraine\u2019s 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.<\/p>\n

Purpose<\/strong>. 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.<\/p>\n

Results<\/strong>. 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\u2019s economic security have been proposed.<\/p>\n

Conclusions<\/strong>. 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\u2019s 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.<\/p>\n

Keywords:<\/strong> shadow economy; shadowing; de-shadowing; shadow sector of the economy.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Feige, (1980). A new perspective on macroeconomic phenomena: the Theory and measurement of the unabsorbed sector in the US economy. Causes.<\/li>\n
  2. Tanzi, (1982). The Underground Economy in the United States Abroad. Lexington, Mass: Lexington Books.<\/li>\n
  3. Bochi, & Povoroznyk, V. (2014). Shadow economy in Ukraine: causes and ways to overcome. International Center for Policy Studies. Retrieved from: http:\/\/icps.com.ua\/assets\/uploads\/files\/t_novaekonom_kaukra_ni.pdf [in Ukrainian].<\/li>\n
  4. Varnalij, Z. S. (2009). Ekonomichna bezpeka. Kyjiv: Znannja [in Ukrainian].<\/li>\n
  5. Zaverukha, M. M. (2015). Systemnyj analiz suti ta zakonomirnostej funkcionuvannja tinjovoji ekonomiky. Ljviv: LRIDU NADU [in Ukrainian].<\/li>\n
  6. Mazur, I. (2008). Detinizacija ekonomiky Ukrajiny: teorija ta praktyka : monoghrafija. Kyjiv : Vydavnycho-polighrafichnyj centr \u00abKyjivsjkyj universytet\u00bb [in Ukrainian].<\/li>\n
  7. Trends in the shadow economy in Ukraine in 2018. Ministry of Economic Development, Trade and Agriculture of Ukraine. Retrieved from: https:\/\/www.me.gov.ua\/Documents\/List?lang=uk-UA&id=e384c5a7-6533-4ab6-b56f-50e5243eb15a&tag=TendentsiiTinovoi Ekonomiki [in Ukrainian].<\/li>\n
  8. Turchynov, V. (1995). Tinjova ekonomika: teoretychni osnovy doslidzhennja. Kyjiv: ArtEk [in Ukrainian].<\/li>\n
  9. Shmatkovskaya, T. O. & Tverda, I. V. (2014). Shadow economy: definition, structure, causes and ways to minimize. Bulletin of Zaporizhia National University: a collection of scientific papers. Economic sciences<\/em>, 1(21), 177-185 [in Ukrainian].<\/li>\n
  10. Yurynets, V. & Londar, S. (1999). Features of the shadow economy in Ukraine. Economic magazine<\/em>, 11-12, 42\u201345 [in Ukrainian].<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 13 September 2020<\/p>\n

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    Bukhtiarova A., Semenog A., Mykhalova A. (2020). Shadow Economy: Causes and Ways to De-shadow Economic Processes. Modern Economics<\/em>, 23(2020), 31-36. DOI: https:\/\/doi.org\/10.31521\/modecon.V23(2020)-05.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: O17 DOI: https:\/\/doi.org\/10.31521\/modecon.V23(2020)-05 [\/vc_column_text][vc_column_text] Bukhtiarova Alina, PhD in Economics, Associate Professor, Associate Professor of the Department of Finance, Banking and Insurance, Sumy State University, Sumy, Ukraine ORCID ID: 0000-0003-2631-3323 e-mail: \u0430.bukhtiyarova@uabs.sumdu.edu.ua Semenog Andrii, PhD in Economics, Associate Professor, Associate Professor of the Department of Finance, Banking and Insurance, Sumy State University, Sumy,
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