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Institutional component of the mechanism of countering the shadowing of the national economy
Abstract
Introduction. The level of shadowing of the economy in Ukraine remains one of the highest in the world and is a threat to its economic security and macroeconomic stability, investment attractiveness, etc. The dynamics of change in the main indicators of the functioning of the shadow economy indicates a low level of effectiveness of existing mechanisms to prevent the implementation of shadow operations. The existing institutional component of this mechanism does not fully form the preconditions for reducing the share of the shadow sector of the economy and therefore does not encourage businesses to withdraw their funds from the shadows. The high level of corruption and bureaucracy in the country has a negative impact on the efficiency of economic entities and thus creates the preconditions for the revision of existing instruments of state regulation of the economy.
Purpose. Research of efficiency of functioning of separate institutional components of the mechanism of counteraction to shadowing of national economy and definition of the most priority measures of prevention of the state by shadow schemes of withdrawal of incomes.
Results. The results of the study identified the main reasons for the high level of shadowing of the national economy, threats, and barriers to counteracting the participation of economic entities in the shadow schemes of capital withdrawal. The analysis of the main vectors of state influence on economic entities is carried out. Their efficiency has been evaluated. It is established that Ukraine occupies one of the last places in the world in the vast majority of indicators. Analysis of individual components of the indicator of ease of doing business in Ukraine showed a significant duration of procedures for reporting and payment of taxes, processing of documents for export/import, a significant cost of processing documents for export/import. The results of the study showed that one of the components that have a significant impact on economic entities is the high level of corruption in the country, low efficiency of corruption control procedures, low efficiency of government, etc. The necessity of development and application of a set of measures aimed at improving the quality of the institutional component of the mechanism of de-shadowing of the economy is proved.
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References
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DOI: http://dx.doi.org/10.35774/econa2019.03.124
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Copyright (c) 2019 Andrii Zolkover
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Articles are distributed under Creative Commons Attribution International 4.0 (CC-BY-NC 4.0)
Science Works Journal "Ekonomichnyy analiz"
ISSN 1993-0259 (Print) ISSN 2219-4649 (Online) DOI: 10.35774/econa
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