CORRUPTION AND ECONOMIC DEVELOPMENT: THE ROLE OF THE STATE

Abstract

Urgency of the research. Corruption as phenomenon is an immanent feature of transformation economies’ institutional environment. It is often a result of weak institutions that prevent the formation of free and competitive markets and the deepening of international economic relationships and political integration, and it restrains economic development. Target setting. The current agenda questions include: Evaluating the economic causes of corruption; the ways of eliminating corruption; and the degree of state corruption and its impact on economic efficiency. Actual scientific research and issues analysis Theoretical and methodological aspects of corruption analysis and its influences on the economy are presented in the works of such scientists as D. O. Kalmykov, V. V. Kolesnykov, V. O. Mandybura, S. V. Maksymov, S. S. Sulakshyn, M. I. Khavroniuk, A. L. Hillman, among others. Uninvestigated parts of general matters defining. The study will research the state channels which influence the level of corruption and the country’s economic development indicators. The research objective. Detecting the correlation between the country’s level of corruption and its economic efficiency, as well as improving the state’s economic policy directions in the prevention of and fight against corruption. The statement of basic materials. The article deals with the economic causes of corruption at micro and macro levels. The authors made the analysis of the relationship between the level of Ukraine’s corruption and its economic development indicators, the reciprocal dependency between the country’s economic situation and the level of its corruption. The institutional reforms aimed at fighting corruption are examined. Conclusions. The questions relating to the anticorruption struggle should not contain only the punitive approach that can be seen in the formation of various institutions. Another important consideration is the set of institutional and socio-economic conditions that form a favorable environment for corruption. This in turn contributes to the deterioration of the economic situation of the state. A comprehensive approach to state policy implementation should be formed in order to eliminate the economic causes of corruption and its consequences in the economy.