The Experience of the Leading EU Countries in Contention with Shadow Economy: Recommendations for Ukraine

Alexey Diachenko, Alexander Galytskiy and Olena Borzenko
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Alexey Diachenko: Odessa State Agrarian University
Alexander Galytskiy: Odessa State Agrarian University
Olena Borzenko: Institute for Economics and Forecasting of NAS of Ukraine

A chapter in Leadership for the Future Sustainable Development of Business and Education, 2018, pp 277-288 from Springer

Abstract: Abstract In modern conditions of global market transformations, the change of technological state of Ukraine’s self-awarenessas an independent country (which is a component of European integrational processes) assumed features of the state strategy and a key priority of the stable social and economic development. Herewith, one of the main tasks of Ukraine’s integration into the European area is the construction of the society-oriented economy and implementation into practice of the democratic state standards. The problem of unshadowing of economic relations, which have become the result of market transformation of the national economy due to the great extent and different forms of shadow process demonstration, essential influence on the economic dynamics, also demands immediate solution. An interesting fact is that unlike Ukraine the shadow economy is almost absent in the EU countries in such sectors as extraction of minerals, electric power industry, and finances. Herewith, shadow economy has become a certain balancer of the western countries’ economy, that is, the less is an incremental capacity in the official sector, the higher is the rise in the illegal one and vice versa. At the same time, it is rational to implement recommendations, which were introduced by the FATF, World Bank, and Тransparency International Ukraine, into national social and economic system not only because they are effective, complete each other, and are aimed at coping with immediate national economic problems but firstly because observance of the generally accepted world standards is an important step in acceleration of European integration processes. They increase the level of trust of the foreign partner countries toward Ukraine with the help of transformation of the national economy to the European standards.

Keywords: Shadow Economy; Shadow Process; Shadow Sector; Hryvnia; Shadow Market (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-74216-8_28

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DOI: 10.1007/978-3-319-74216-8_28

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