THE IMPACT OF THE EXTERNAL ENVIRONMENT ON THE FUNCTIONING OF THE INFORMAL SECTOR OF THE ECONOMY
Journal Title: Інноваційна економіка - Year 2017, Vol 67, Issue 1
Abstract
Purpose. The aim of the article is the research of the component of the institutional and infrastructure environment and their impact on ISЕ. Methodology of research. The fundamental provisions of modern economic theory, outlined in the scientific works of domestic and foreign scholars on the theory of institutionalism are the theoretical and methodological basis for writing the article. The general scientific and special methods are used to solve the identified problems in the research process, including: analysis, synthesis, induction, deduction (to determine the nature and role of formal and actual institutionalization); abstract and logical (to form conclusions and proposals to improve the external environment of ISЕ). Findings. The essence, characteristics, differences, advantages and disadvantages of the various elements of the external environment of ISЕ are revealed. It is proved that the existing institutional and infrastructural environment increases the scale of ISЕ. The expediency of change both formal and informal institutions is substantiated. It is determined that in order to create a motivational mechanism for the transition from the informal sector of the economy to the formal sector of the economy should take measures to improve the legal framework and the taxation system of business entities, improvement of infrastructure provision. Originality. The conceptual approach to the definition of the external environment of the informal sector of the economy, which, unlike existing allowed systematizing elements of institutional, infrastructural and marketing environment is improved, to determine their impact on the scale and dynamics of ISЕ. Practical value. Using the proposed conceptual approaches allows to make informed decisions about changes in the external environment in order to legalization ISЕ in Ukraine.
Authors and Affiliations
Bogdan Ganzha
Keywords
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