MANAGEMENT OF THE INCOME AND BUSINESS ACTIVITY OF THE POPULATION IN THE CONTEXT OF DE-SHADOWING THE ECONOMY OF UKRAINE

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DOI:

https://doi.org/10.18371/fcaptp.v3i38.237426

Abstract

Abstract. The shadowing of the economy is a significant obstacle on the way to stable economic development and the reason for deteriorating investment climate and imbalance of economic incentives in the national economy of Ukraine. The aim of the article is to determine the factors of shadowing and de-shadowing of Ukraine’s economy in the areas of household income and business and investment activity of the population, as well as justification of measures to de-shadow economic processes in Ukraine. On the basis the calculation of the Fechner correlation coefficient, the relationship between the level of the shadow economy of Ukraine and indicators of household income and indicators of small and medium-sized business development was revealed. Іn the sphere of household income factors determining level of the black economy are as follows: increacing in disposable income per capita (the correlation coefficient -0,75), the change in the wage share in househol incomes (the correlation coefficient -0,75), the level of social payments (the correlation coefficient +0,5) and employment (the correlation coefficient +0,75). In the field of entrepreneurship the most sagnificant factors determining level of the underground economy are change in the volume of sales of small and medium-sized businesses (the correlation coefficient 
-0,75) as well as change of financial result of small enterprises (functional inverse relationship).

It is necessary to increase the incomes of the population, stimulate their investment and entrepreneurial activity, in particular, liberalize tax policy for small and medium-sized businesses in order to reduce the level of the underground economy of Ukraine. Special attention should be paid to the development of small businesses, in particular, to changing approaches to regulatory policy in the field of small businesses, to simplify organizational procedures related to doing business as much as possible and ensure the availability of credit.

Keywords: underground economy, tax policy, small businesses, medium-sized businesses, entrepreneurial activity.

JEL Classification O17, H25, D31

Formulas: 1; fig.: 9; tabl.: 8; bibl.: 21.

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Published

2021-06-30

How to Cite

Tkachyk, L., Zamaslo, O., Kulchytskyy, M., Mayovets, Y., & Mayovets, Y. (2021). MANAGEMENT OF THE INCOME AND BUSINESS ACTIVITY OF THE POPULATION IN THE CONTEXT OF DE-SHADOWING THE ECONOMY OF UKRAINE. Financial and Credit Activity: Problems of Theory and Practice, 3(38), 95–110. https://doi.org/10.18371/fcaptp.v3i38.237426

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Section

The topical questions about the development of finance, account and audit