UDC 339.13:332.122(477); JEL R19
Borshchevskyy, V. (2020). Torhovel'na sfera v sotsial'no-ekonomichnomu rozvytku rehioniv Ukrayiny: potentsial zrostannya v umovakh detinizatsiyi [Trade sphere in the socio-economic growth of Ukrainian regions: development capacity in conditions of de-shadowing]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 142 (2) (pp. 11-16). DOI: https://doi.org/10.36818/2071-4653-2020-2-2. [in Ukrainian].
Sources: 10

Authors



Borshchevskyy Viktor Valentynovych

Doctor of Economics, Associate Professor

Leading Researcher of the Department of spatial development of the Dolishniy Institute of Regional Research of NAS of Ukraine; Head of the Department of public administration of the Ukrainian Catholic University

Contacts: borshchevsky@ukr.net

Webpages:

Resume

The influence of the shadow economy on the development of trade in the regions of Ukraine is investigated. The factors that reduce the utilization efficiency of trade capacity in the socio-economic development of Ukrainian regions are identified. The principal factors of expansion of the shadow economy in the trade sphere of Ukrainian regions are outlined. These include substantial fiscal burden on business, presence of regulatory problems, high level of markets monopolization, weak economic growth, population poverty, poor competences of local governments. The main negative consequences of shadow trade for the economy of numerous regions of Ukraine are considered, in particular the reduced innovative capacity of economic development, spread of corruption, deformation of business culture, decrease of goods quality and consumers’ safety, distortion of market information, impossibility of timely and adequate activity from public administration and local governments. Three probable effects from reducing the efficiency of utilization of the capacity of socio-economic development in Ukrainian regions because of shadowing in the trade sphere are described, namely the financial losses of state and local budgets caused by the decrease of tax payments, growing unemployment and illegal labor, and the shortage of business profits due to worsening investment climate and declining value of assets of trading companies. Proposals for prospective directions of the de-shadowing of the trade sphere are substantiated. Mechanisms for increasing the efficiency of utilization of trade capacity in the socio-economic development of Ukrainian regions are outlined. The priority means of solving existing problems include normalization of the status of an individual entrepreneur in the trade sphere; modernization of wholesale and retail trade infrastructure; creating the right conditions for the spread of e-commerce and non-cash payments for purchased goods.

Keywords:

trade sphere, trade operations, wholesale trade, retail trade, shadow economy, de-shading, socio-economic potential, regions of Ukraine

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