The shadow economy of the country: basic theoretical principles

Authors

  • Iryna Ihorivna Bozhydai PhD in Economics, Associate Professor, Associate Professor of the Department of Management, Business and Administration State Biotechnology University https://orcid.org/0000-0003-2227-219X
  • Sofia Ivanivna Minenko Doctor of Philosophy in Management, Associate Professor, Associate Professor of the Department of Management, Business and Administration State Biotechnology University https://orcid.org/0000-0003-3033-1911
  • Viktor Ivanovych Larin PhD student of the third (educational and scientific) level of higher education State Biotechnology University https://orcid.org/0009-0006-3260-0838
  • Ihor Petrovich Bozhydai second (master's) level higher education student State Biotechnology University

DOI:

https://doi.org/10.5281/zenodo.15179697

Keywords:

shadow economy, shadowing, de-shadowing, informal sector, economic regulation, socio-economic risks, economic security

Abstract

The shadow economy is a complex socio-economic phenomenon that encompasses a wide range of informal and illegal economic activities that are outside the scope of state regulation. Its growth poses significant challenges to economic stability, financial security and the effective functioning of state institutions. In the context of globalisation and digital transformation of the economy, the problem of shadow activities is becoming particularly relevant, as traditional methods of control and regulation are not effective enough.

The purpose of the study is to analyse the theoretical foundations and scientific approaches to the shadow economy, which will make a significant contribution to the development of a methodology to combat this phenomenon. The study will not only clarify and expand existing approaches, but also create new tools for accurate measurement and control of shadow processes.

The research methods include systemic and structural-functional analysis, comparative analysis of approaches to defining the shadow economy. An interdisciplinary approach combining economic, sociological and legal aspects was used.

The study of the theoretical foundations of the shadow economy plays a key role in revealing the mechanisms of its functioning and developing effective measures of state regulation. The analysis of modern scientific concepts shows that this phenomenon is complex, covering both economic and social aspects.

The results of this study show that without a detailed theoretical study of the shadow economy, it is impossible to create effective methods for its assessment and control. The absence of a coherent approach to defining this phenomenon and the factors that shape it significantly complicates the process of developing strategies for de-shadowing the economy.

Further research should focus on studying the institutional and social factors that contribute to the development of the shadow economy, as well as on analysing the impact of globalisation and digital technologies on its spread. Improving scientific approaches in this area will help to create effective mechanisms of state regulation that will ensure transparency of economic processes and contribute to the country's sustainable development.

Published

2025-03-29

How to Cite

Bozhydai, I. I., Minenko, S. I., Larin , V. I., & Bozhydai , I. P. (2025). The shadow economy of the country: basic theoretical principles. Current Issues of Economic Sciences, (9). https://doi.org/10.5281/zenodo.15179697