The impact of negative social capital on the economy: peculiarities in Ukraine

Abstract

Introduction. In modern economic literature one can find a lot of allegations that the negative and positive social capital makes a significant impact on the economy and standard of living of any country. Therefore, the investigation of negative capital in Ukraine becomes important and urgen. Corruption and its impact on the domestic economy belong to negative capital. Aspects of social capital are at the forefront of attention in science. They are considered by many experts, researchers, state leaders, politicians and the public as a non-economic factor in the development of the national economy, which may be the paradigm of economic reform and improving living standards of Ukrainian.

Purpose. The purpose of the article is to identify corruption as a negative impact of social capital on economic development and its specificity in today's realities in Ukraine.

The method (methodology). The choice of research methods is defined due to the aim of the article. Fr its implementation we have used complementary range of modern scientific methods and approaches. Their use made it possible to systematize theoretical research and empirical sources of information, analyze the impact of negative social capital on economic growth in Ukraine and to formulate the evidence-based conclusions and proposals. In scientific research when writing the article we used general scientific methods of cognition, such as: theoretical, logical-semantic, abstraction, structural and functional.

The methodological base of research is a systematic approach. Its theoretical base has become the position of economic theories and their modern concepts, research of leading domestic and foreign scientists - sociologists, political scientists, historians and economists. The study has used a number of scientific sources, the resources which have been  received from foreign academic scientific internet portals.

Results. The results of the analysis have shown that the level of corruption in Ukraine as a negative social capital remains critically high. Negative social capital is too "exaggerated", which leads to slowing of economic development and positive social capital. It has been discovered the interdependence between the levels of corruption in Ukraine and state institutions, the effectiveness of which determines the political stability and economic growth. The negative social capital generates a number of negative phenomena in the economy of Ukraine, in particular the decrease in foreign investment, obstruction of doing business in the country, reduction of its competitiveness on the market, increase of domestic and external debt, slowing of  economic growth, and others.