nezhyvenko, oksana

Competition and Corruption: the Idea of Shadow-free Economy

One of the main challenges for all the countries during their economic transformation on the way to free competition is struggling against shadow economy. It is true that so called “not observed economy” does exist in every country. However, for each country its dimensions are different. Corruption is one of the reasons why shadow economy is so threatening in the Eastern European countries. This region is considered to be the “outsider” of Europe because of negative statistics regarding corruption in its countries and respectively - sizes of their economies’ shadow sectors. Eastern European countries are regarded to have less democratic, economic and regulatory institutions. Such a background, in collusion with broad discretionary powers of public officials, leads to corruption, lobbying, and various forms of shadow activities. Such activities tend to make the manners of behaving that have arisen in the shadow sector become the moving force not only in it, but also behind measures that are taken in the official economy, in the legal and political systems, which created a threat for these countries to compete equally. Such phenomena have been observed in the last few decades in all Eastern European countries, and they have been a great obstacle in the way of economic development and growth. The research studies the impact of corruption on free competition and competitiveness of the Eastern European countries comparing their shadow sectors.

Wednesday 24 October 16:45-18:45 Panels II, Panel 5 Problems of Healthy Economic Competition (Hall 14)