IMPACT OF SHADOW ECONOMY ON ECONOMIC, POLITICAL, AND SOCIAL DEVELOPMENT IN UKRAINE
Journal Title: Проблеми системного підходу в економіці - Year 2017, Vol 6, Issue 62
Abstract
The article analyses the level of the national shadow economy, examines the causes of shadow economic activity in Ukraine, and identifies the most common shadow schemes with the indication of probable losses for the state budget. The paper describes the main areas of influence of the shadow national economy on the economic, social, and political situation in the country. The article substantiates that changes in the economic, social, and political situation of the country, caused by shadow economic activity, are interconnected. In this regard, for the quantitative formalization of causal relationships between these processes in Ukraine, structural modelling tools are used. In the article, the level of the shadow economy is determined in accordance with the methodological recommendations of Ministry of Economic Development and Trade of Ukraine. In order to characterize the development of the economic, social and political situation in Ukraine, the authors use such international indices as Human Development Index, Happy Planet Index, Corruption Perceptions Index, Failed States Index, Investment Attractiveness Index, and Index of Economic Freedom. The obtained results of empirical research allowed determining the degree and nature of the influence of the shadow economy on different spheres of life: economic, social, political.
Authors and Affiliations
V. V. Bozhenko, M. M. Boyadjan
Keywords
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