Abstract

The article examines the influence of the domestic shadow economy on the main macroeconomic indicators of the state's development, and offers proposals for reducing the volume and level of the shadow economy of Ukraine. It systematizes scientific approaches to the essence and factors of economic shadowing and economic security. The study examines the experience of international organizations aimed at combating money laundering. It is revealed that the shadow economy of the country, in the conditions of globalization, is one of the significant exogenous factors influencing the economic security of the state. Most European countries, including Ukraine, use Gross Domestic Product (GDP) as an indicator of the volume of national production and the economic well-being of society. The article highlights the dynamics of GDP and the level of the shadow sector of the economy as a percentage of Ukraine's GDP over the entire period of the country's independence. Obtaining clear, reliable, and well-founded data on the volumes of the shadow economy allows developing well-reasoned measures to strengthen the economic security of the state. The implementation of measures aimed at strengthening the economic security of the state is primarily based on the development and implementation of effective legislative acts to counteract the shadowing of the economy. These measures should provide a reduction in the tax burden, the creation of more favorable conditions for legal work, the establishment of a system to counteract the legalization of criminally obtained income, the implementation of effective financial control, and the creation of liberal conditions in the legal economy. To overcome the negative trends caused by a state of war, there is a need to develop an adequate mechanism to reduce the volumes and level of the domestic shadow economy. This mechanism should not only allow the country to quickly adapt to the modern changing environment but also contribute to the resolution of national security issues. Addressing this task necessitates the development of a set of practical recommendations for reducing absolute and relative levels of economic shadowing and, based on this, strengthening the country's economic security. In this regard, the authors have developed a multi-level model for reducing the volumes and level of the shadow economy by improving methodological approaches to the management of this process at the regional, national (state), intergovernmental, and global levels.

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