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Shadow Economy And Its Impact On The Public Administration: Aspects Of Financial And Economic Security Of The Country'S Industry

Author

Listed:
  • Nestor SHPAK

    (Department of Management and International Business, Institute of Economics and Management, Lviv Polytechnic National University, Ukraine)

  • Ihor KULYNIAK

    (Department of Management of Organizations, Institute of Economics and Management, Lviv Polytechnic National University, Ukraine)

  • Maryana GVOZD

    (Department of Management of Organizations, Institute of Economics and Management, Lviv Polytechnic National University, Ukraine)

  • Olga PYROG

    (Department of Management of Organizations, Institute of Economics and Management, Lviv Polytechnic National University, Ukraine)

  • Wlodzimierz SROKA

    (Department of Management, Faculty of Applied Sciences, WSB University, Dabrowa Górnicza, Poland & North-West University, South Africa)

Abstract

Many countries face with a shadow economy today. This phenomenon is a real problem for the governments, especially in the context of significant upheavals, reducing fiscal potential, distorting the development indicators and complicating any analytical conclusions about the state of the economic system. Given these facts the study analyses the problem of shadow industry in the Ukraine’s regions, in particular by evaluating the integral index of financial and economic security of the industry. Its goals are: 1) development of the theoretical and applied approaches to the impact of the shadow economy on the public administration in relation to financial and economic security of industry in the regions of the country; 2) improvement of the methodology for governmental policy analysis of the level of the shadow economy in the said industry. Recommendation of the public policy measures to reduce the level of shadow industry in the regions were also presented. The method of analytic hierarchy process, the expert methods and the method of calculating the integral index as research methods were used in the study. Based on the analysis conducted, the matrix of strategic zones Level of the shadow economy - level of the financial and economic security was constructed. The proposed matrix should be useful in taking public management decisions, depending on the strategic area in which the region is located.

Suggested Citation

  • Nestor SHPAK & Ihor KULYNIAK & Maryana GVOZD & Olga PYROG & Wlodzimierz SROKA, 2021. "Shadow Economy And Its Impact On The Public Administration: Aspects Of Financial And Economic Security Of The Country'S Industry," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2021(36), pages 81-101, June.
    • Handle: RePEc:rom:rampas:v:2021:y:2021:i:36:p:81-101
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    References listed on IDEAS

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    4. Kunytska-Iliash, Marta, 2023. "Assessment of the financial security of agriculture in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(1), March.

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    More about this item

    Keywords

    shadow economy; financial and economic security; matrix of strategic zones; industry; public administration; public policy.;
    All these keywords.

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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