Journal of Economics and Economic Education Research (Print ISSN: 1533-3590; Online ISSN: 1533-3604)

Abstract

Interconnection and Reciprocal Influences between a State's Economy and Economic Crime: Before a Problem Statement

Author(s): Ihor Mytrofanov, Anatoliy Prytula, Natalia Neledva, Igor Kalimbet, Anatolii Medentsev

The article is devoted to the impact of white-collar crime on the country's economy through the shadow economy. The share of the shadow sector in total gross domestic product is one of the indicators used to determine the circumstances that have a negative effect on the economic security of Ukraine. The level of shadow economy in Ukraine amounted to 40% of gross domestic product in 2015, 35% – in 2016, 32% – in 2017, 30% – in 2018. We have observed certain one-sidedness in the crime problems studies, as they usually do not consider destructive processes in the economic sphere itself. In fact, the relationship between economic crime and the economy is much more complex and characterized by reciprocal influences, when the sphere of legal economic activity is destroyed and replaced by criminal business, organized mostly by semi-criminal or fully criminalized government. In the latter, it refers not only to the destruction of the economic sphere, but also the loss of control of the entire system of public administration. The purpose of this article is to establish the conceptual basis for the study of reciprocal influences of economic processes in the country and the level of economic and conventional crime, making it possible to formulate sciencebased approach for overcoming the negative interconnection of the analyzed spheres of social life. Based on the findings of this study we came to the following conclusions: 1. The link between economics and economic crime is reverse and in fact affects the size of the shadow economy. 2. Money in the shadow economy forms a financial base for the prospects of organized crime, the growth of criminogenic potential in the country to the level of selfregulatory extended reproduction, the emergence of new ways of tax evasion, the spread of massive corruption and other socially dangerous processes. 3. The need for further study of specific types of economic crime and their destructive impact on the Ukrainian economy is highlighted.

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