Ukrainian economy unshadowing as a factor of state economic security management

Economic Annals-ХХI: Volume 159, Issue 5-6, Pages: 25-28

Citation information:
Hubarieva, I.,  Chmutova, I., & Maksimova, M. (2016). Ukrainian economy unshadowing as a factor of state economic security management. Economic Annals-XXI, 159(5-6), 25-28. doi: https://doi.org/10.21003/ea.V159-05

Iryna Hubarieva
D.Sc. (Economics),
Associate Professor,
Research Center for Industrial Problems of Development of the
National Academy of Sciences of Ukraine
5 Svobody Sq, Kharkiv, 61022, Ukraine
Gubarievairyna@gmail.com

Iryna Chmutova
D.Sc. (Economics),
Associate Professor,
Simon Kuznets Kharkіv National University of Economics
9-A Nauky Ave., Kharkiv, 61166, Ukraine
chmutova_i@ukr.net

Marina Maksimova
PhD (Economics),
Senior Lecturer,
Simon Kuznets Kharkіv National University of Economics
9-A Nauky Ave., Kharkiv, 61166, Ukraine
maximovamv@ukr.net

Ukrainian economy unshadowing as a factor of state economic security management

Abstract. The level of shadowing of the Ukrainian economy is a key threat to the country’s economic security. The authors used a cognitive approach to modelling an impact of destructive factors on the economic security of the country. The main problems of unshadowing of the Ukrainian economy are as follows: a slow pace of anti-corruption and judicial reforms, a considerable tax burden and ineffective tax administration, as well as base erosion and profit shifting. The following measures should be taken in order to ensure economic security of Ukraine: to reduce corruption, to reform the judicial system, to decrease the excessive regulatory and tax pressure on the corporate sector, to conduct deoffshorisation of the country’s economy.

Keywords: Economic Security; Management; Cognitive Approach; Unshadowing of the Economy; Corruption; Tax Pressure; Deoffshorisation; Finance

JEL Classification: O17

DOI: https://doi.org/10.21003/ea.V159-05

References

1. Buzan, B., & Waever, O. (2003). Regions and Powers: The Structure of International Security. Cambridge: Cambridge University Press.
2. Gutmann, P. (1977). The Subterranean Economy. Financial Analysts Journal, 33(6), 64-65.
   doi: http://dx.doi.org/10.2469/faj.v33.n6.26
3. Feige, E. L. (1990). Defining and Estimating Underground and Informal Economies: The New Institutional Economic Approach. World Development, 18(7).
   Retrieved from https://www.researchgate.net/publication/4937799_
   Defining_and_Estimating_Underground_and_Informal_Economies_The_New_Institutional_Economics_Approach
4. Soto, de, Н. (1995). The Other Path. The Invisible Revolution in the Third World. Мoscow: Catallaxy, 1995 (in Russ.).
5. Schneider, F. (2015). Size and Development of the Shadow Economy of 31 European and 5 other OECD Countries from 2003 to 2015: Different Developments.
   Retrieved from http://www.econ.jku.at/members/Schneider/files/publications/2015/ ShadEcEurope31.pdf
6. Varnalii, Z. S., Burkaltseva, D. D., & Saienko, О. S. (2011). Economic security of Ukraine: problems and priorities of strengthening. Kyiv: Znannia Ukrainy (in Ukr.).
7. Haiets, V. М., Kyzym, М. О., Klebanova, Т. S., Cherniak, О. І., et al (2006). The modelling of economic security: state, region, enterprise: Monograph. V. М. Haiets (Ed.). Publishing house «Inzhek» (in Ukr.).
8. Mazur, І. І. (2006). Reducing shadow economy of Ukraine: Theory and Practice: Monograph. Kyiv: Publishing and polygraph centre of Kyiv National University (In Ukr.).
9. Muntiian, V. I. (1999). Economic security of Ukraine. Kyiv: Computer-publishing, information center «KVITs», 1999 (in Ukr.).
10. Novikova, O. F., & Pokotylenko R. V. (2006). Economic security: a conceptual definitions and mechanisms of support: Monograph. National Academy of Sciences of Ukraine. Institute of Industrial Economics (in Ukr.).
11. Predborskyi, V. A. (2005). Unshadowing of the economy in the context of the transformation processes. Theory and methodology: Monograph. Kyiv: Condor (in Ukr.).
12. Ministry of Economic Development and Trade of Ukraine (2015). Tendencies of the shadow economy in Ukraine for 9 months of 2015.
    Retrieved from http://www.me.gov.ua/Documents/List?lang=uk-UA&id=e384c5a7-6533-4ab6-b56f-50e5243eb15a&tag=TendentsiiTinovoiEkonomiki (in Ukr.)
13. Axelrod, R. (1976). The Structure of decision: cognitive maps of political elites. Pinceton: University Press.
14. Roberts, F. S. (1986). Discrete mathematical models with application to social, biological and environmental problems. Мoscow: Nauka (in Russ.).
15. Kolodiziev, O., & Gontar, D. (2014). Scenario modelling of the bank’s market value strategic management. Ekonomicnij Casopis-XXI (Economic Annals-ХХI), 9-10(2), 19-23.
    Retrieved from https://ea21journal.world/index.php/ea-v145-05/ (in Ukr.)
16. Kyzym, N. A., & Uzunov, V. V. (2007). Target-oriented approach to the governance of social tension in the regions of the country: Monograph. Kharkiv: Publishing house «Inzhek» (in Russ.).
17. Tyshchenko, V. F. (2012). Integral estimation for development level of information and communication technologies as a structural component of knowledge economy. Aktualni problemy ekonomiky (Actual Problems of Economics), 137(11), 227-237 (in Ukr.).
18. Corruption Perceptions Index (2015).
    Retrieved from http://ti-ukraine.org/CPI-2015/table_data_CPI-2015
19. The National Anti-Corruption Bureau (2016). Official web-site.
    Retrieved from http://nabu.gov.ua/byudzhet (in Ukr.)
20. Razumkov Centre (2016). Official web-site.
    Retrieved from http://www.uceps.org/ukr/poll.php?poll_id=1030 (in Ukr.)
21. Gallup (2016). Confidence in Judicial Systems Varies Worldwide.
    Retrieved from http://www.gallup.com/poll/178757/confidence-judicial-systems-varies-worldwide.aspx
22. High Qualification Commission of Judges of Ukraine (2016). Re-credentialing of judges is being implemented with serious problems – the head of the High Qualification Commission of Judges of Ukraine.
    Retrieved from http://vl.ko.court.gov.ua/sud1010/245746
23. Pylypchenko, O. O. (2015). The impact of the shadow economy on economic security of Ukraine. Strategic Priorities, 4(37), 32-36.
    Retrieved from http://sp.niss.gov.ua/content/articles/files/4-1456999955.pdf (in Ukr.)
24. WEF (2016). The Global Competitiveness Report 2015-2016.
    Retrieved from http://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_2015-2016.pdf
25. Kar D., Spanjers J. (2015). Illicit Financial Flows from Developing Countries: 2004-2013. Global Financial Integrity.
    Retrieved from http://www.gfintegrity.org/report/illicit-financial-flows-from-developing-countries-2004-2013
26. The State Statistics Service of Ukraine (2016). Official web-site.
    Retrieved from http://www.ukrstat.gov.ua (in Ukr.)
27. The Verkhovna Rada of Ukraine (2016). Official web-site.
    Retrieved from http://zakon3.rada.gov.ua/laws/main/tt1001 (in Ukr.)

Received 12.04.2016