SHADOW ECONOMY IN THE AGRICULTURAL SECTOR OF UKRAINE: CHALLENGES AND DIRECTIONS FOR OVERCOMING

Abstract

The problem of the shadow economy is relevant for most countries of the world. In some cases, its dimensions are insignificant and do not have a significant impact on the economy, while in other countries this indicates the existence of a system of shadow economic relations. Unfortunately, Ukraine belongs to the second category, where the volume of the shadow economy, according to various sources, is estimated at the level of 20 % to 50 % of GDP. The article examines the essence, components and features of the shadow economy in the agro-industrial sector of Ukraine. The main reasons for the emergence of the shadow economy and its manifestation are substantiated, the consequences of the shadow economy for the economic security of the state are determined. The results of the analysis of the factors that cause the shadowing processes of the country’s economy represent an important contribution to understanding the possibilities of influencing these phenomena and creating the necessary conditions for the further development of the shadowing theory. It is worth taking into account that this set of reasons is only an intermediate link in the chain of cause-and-effect relationships connected with deeper layers of social relations. The specified set of reasons requires further consideration, in particular, regarding its origin and development. This is particularly important because of the consequences it has for the competitiveness of enterprises, as well as for the fairness and efficiency of a market economy. The fact that some individuals produce goods and services at prices that fully reflect the taxes imposed by the government, while others can enjoy similar but cheaper goods or services from the shadow economy, makes the economic system less fair. All these persons have access to public services. The same applies to those who provide services.