UDC 338.43:658.012.2:658.15:330.131.7; JEL Q13, L25, G34, D22, O12
Dubyna, M. P., & Selepey, Yu. Ya. (2026). Minimization of the shadow economy as a strategic factor for ensuring sustainable development of Ukraine. Rehional'na ekonomika - Regional Economy, 120 (2), 44-54. DOI: https://doi.org/10.36818/1562-0905-2026-2-4.
Sources: 20

Authors



Dubyna Mariia Petrivna

Ph.D. of Economics

Associate Professor of the Department of economics and business in the agricultural complex named after Ivan Popovych of the Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies of Lviv

Contacts: dubynamarichka@gmail.com

Webpages:

Selepey Yuriy Yaroslavovych

Postgraduate of the Department of economics and digital business of the Educational and Scientific Institute of Economics and Business Education of the State University of Economics and Tehnology

Contacts: yuselya@yahoo.com

Webpages:

Resume

Purpose. The purpose of the article is to analyze the impact of the shadow economy on the economic development of Ukraine and to substantiate the main directions of its minimization as an important factor in ensuring the sustainable development of the state.
Methodology. An important aspect of the study is the assessment of the scale of the shadow economy. In scientific practice, various methodological approaches are used to measure it, in particular, direct methods, indicator-based methods and econometric models. The most common are indirect assessment methods based on the analysis of macroeconomic indicators, such as the volume of cash in circulation, the employment rate, the tax burden and other indicators of economic activity.
Results. The paper summarizes the main approaches to understanding the essence of the shadow economy and identifies its main features. It is proven that it has a negative impact on the state economy, as it leads to budget losses, a decrease in the effectiveness of state policy, increasing inequality and worsening business conditions. At the same time, it is emphasized that the shadow sector partially performs an adaptive function in conditions of economic instability. The factors of formation of the shadow economy in Ukraine are analyzed. It is established that institutional, economic, regulatory and social factors have the greatest influence. These include imperfect legislation, complexity of tax administration, high level of tax burden, corruption, as well as low level of trust in state institutions. It is shown that the combination of these factors creates conditions for the spread of informal economic activity. The article analyzes the dynamics of the shadow economy of Ukraine in recent years. It is found that until 2021 there was a tendency to gradually decrease its level, however, modern crisis phenomena, in particular the pandemic and military events, led to an increase in the share of the shadow sector. This indicates a high sensitivity of the economy to external and internal challenges.
Originality. Special attention is paid to international experience. It is noted that in the member states of the European Union the level of the shadow economy is much lower, which is explained by more effective state policy, high level of trust and developed institutions. This creates a basis for adapting best practices in Ukraine.
Practical value. An author’s model for minimizing the shadow economy is proposed, which combines institutional, tax-economic, digital and social mechanisms. The model assumes coordinated interaction of the state, business and society and is aimed at increasing the transparency of economic processes, increasing tax revenues and improving the investment climate. The practical significance of the results lies in the possibility of their use when developing state economic policy. The implementation of the proposed approaches will contribute to strengthening economic security, increasing the efficiency of public administration and ensuring sustainable development of Ukraine.

Keywords:

shadow economy, minimizing the shadow economy, sustainable development, economic security, state regulation, tax administration, digitalization of the economy