THE SHADOW ECONOMY AND LAW: THE ANALYSIS OF THE INTERACTION |
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Author |
 Ovsienko O. V., associate professor, Kharkiv, Pushinska, 77  Chuprina O.O., associate professor, Kharkiv, Pushinska, 77 |
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In heading |
Economic theory of law; | ||||
Signed print |
25.11.2016 | Issues number |
2016 - № 4 (27) | Page |
97-106 |
Type of articles |
Scientific article | Code UDK |
330.16:340.11 | ISSN print |
2411-5584 |
Abstract |
Problem setting. The subjects of the shadow sector is economically interested in its improvement. However, the systemic nature of the shadow economy in Ukraine makes one doubt the loyalty of such assumptions. Recent research and publications analysis. The communications between the shadow economy and law Institute have been actively studied in Economics (S. Baranov, G. Becker, O. Bessonova, P. Guttman, S. Kovalev, Yu. Latov, L. Kolesnikova, M. Romer, E. de Soto, V. Tanzi, E. Feige, K. Hart, F. Shnyder, and others). The theoretical platform of these studies is the neo-institutional approach, most systematically presented in the works of E. de Soto. Paper objective. The article’s purpose is to determine the conditions of economic interest of the participants of the informal sector in the creation and observance of effective norms and rules of economic behavior. Paper main body. The author determines the basic directions of the analysis of the interaction between the shadow economy and law: identifying features of the legal regime that create in individuals sustained economic motivation to switch to the shadow sector; the definition of the economic preconditions the concernment of the constituent entities of the informal sector in improving the system of law. The author analyzed key benefits that get from participation in the shadow economy Ukrainian business entities. Conclusions of the research. The article is proved that the legal framework of the domestic economy creates sufficient economic motivation for mass stay of its subjects in the informal sector: imperfection licensing procedures and numerous administrative and regulatory barriers in the way of business development; interruption of the connection between socio-economic rights and duties of citizens; the blur of responsibility for the adoption decisions of the power actors that affect the allocation of resources. The result is distorted motives of economic behavior. As a result, of the motives for economic behavior are distorted. Short Abstract for an article Аbstract. The article is proved that the legal framework of the domestic economy creates sufficient economic motivation for mass stay of its subjects in the informal sector. The article is determined the conditions of economic interest of the participants of the informal sector in the creation and observance of effective norms and rules of economic behavior. |
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Keywords |
Shadow economy, informal economic relations, the legal system, the costs of compliance, costs illegality. | ||||
Reviewer |
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External reviewer |
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Article in PDF |
4 97-106 | ||||
Bibliography |
none | ||||
Code DOI |
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09.10.2016