Corruption and the Shadow Economy: Interconnection and Consequences

Abstract

This scientific article analyzes the complex interrelationship between corruption and the shadow economy. The study examines the impact of corruption on the formation and development of the shadow economy, as well as its negative consequences for economic growth, public administration efficiency, and social justice in society. The shadow economy creates a fertile ground for corrupt schemes, allowing them to operate outside state control. The article discusses the root causes of these phenomena, their effects on the national economy, and effective policy measures to combat them. In particular, the importance of institutional reforms, increasing transparency, improving legal mechanisms, and strengthening public oversight is emphasized. The research substantiates the need for a comprehensive and systemic approach in fighting corruption and the shadow economy, which contributes to ensuring sustainable development and social well-being.