The Impact of Corruption on the Economic Security of the State
Abstract
The level of national economic security is influenced by many factors. But over the past year and a half, Ukraine has faced new challenges and threats of an unprecedented blow to its economic security from the armed aggression of the Russian Federation. In addition to the above-mentioned threats to Ukraine's economic security, "old" internal problems, one of which is corruption, have had a significant negative impact. Summarizing domestic and foreign scientific theories and empirical studies, the article analyzes the main elements of corruption's impact on economic security and identifies the direct and indirect impact of corruption on economic growth. It is argued that corruption has increased the challenges to the country's economic security due to: a decrease in total investment and a slowdown in economic growth, a reduction in spending on education and health care, a deterioration of infrastructure and taxation, and a decrease in foreign direct investment. The author concludes that it is necessary to systematically develop and implement measures to prevent and combat economic corruption. At the same time, achieving economic security should be an attribute and integral part of the national anti-corruption policy.
References
[1] Akimova, L. М., Litvinova, I. F., Ilchenko, H. O., Pomaza-Ponomarenko, A. L., and Yemets, O. I. 2020. The negative impact of corruption on the economic security of states. International Journal of Management, 11(5).
[2] Alfada, A. 2019. The destructive effect of corruption on economic growth in Indonesia: A threshold model. Heliyon, 5(10).
[3] Asteriou, D., Pilbeam, K., and Tomuleasa, I. 2021. The impact of corruption, economic freedom, regulation and transparency on bank profitability and bank stability: Evidence from the Eurozone area. Journal of Economic Behavior and Organization, 184: 150-177.
[4] Bahoo, S., Alon, I. and Paltrinieri, A. 2020. Corruption in international business: A review and research agenda. International Business Review, 29(4): 101660.
[5] Baranovsky, O.I. 2006. Bank safety: the problem of measurement. Available at: http://eip.org.ua/docs/EP_06_1_07_Uk.pdf
[6] Burakovsky, I. 2018. Ukraine against corruption: Economic front. Economic assessment of anti-corruption measures in 2014-2018. Available at: http://www.ier.com.ua/files/publications/Policy_papers/IER/2018/Anticorruption_%20Report_Ukr_.pdf
[7] Busol, O.Yu. 2015. Anti-corruption crime in Ukraine in the context of modern anti-corruption strategy. Kyiv, National Academy of Sciences of Ukraine, Institute of State and Law named after V.M. Koretsky.
[8] Ceschel, F., Hinna, A. and Homberg, F. 2022. Public Sector Strategies in Curbing Corruption: A Review of Literature. Public Organization Review, 22(3): 571-591.
[9] Drebee, H. A. and Abdul-Razak, N. A. 2020. The impact of corruption on the agriculture sector in Iraq: An econometrics approach. IOP Conference Series: Earth and Environmental Science, 553(1): 012019.
[10] Geets, V.M. 2017. Peculiarities of the interconnection of economic and political transformations on the way to the reconstructive development of the economy of Ukraine. Ukraine Economy, 10: 3-17.
[11] Hanlon, R. 2022. Regime legitimacy, human rights, and corruption. Available at: https://www.elgaronline.com/display/book/9781788971942/book-part-9781788971942-9.xml
[12] Hoinaru, R., Buda, D., Borlea, S.N., Veidean, V.L. and Achim, M.V. 2020. The impact of corruption and the shadow economy on economic and sustainable development. Are they 'grinding the wheels' or 'greasing the wheels'? Sustainability, 12(2): 481.
[13] Lemarchan, R. 2019. The state, the parallel economy and the change in the structure of patronage systems. Unstable Balance, 1: 149-170.
[14] Malanski, L. K. and Póvoa, A. C. S. 2021. Economic growth and corruption in emerging markets: does economic freedom matter? International Economics, 166: 58-70.
[15] Margalit, Y. 2019. Economic insecurity and causes of populism reviewed. Journal of Economic Perspectives, 33(4): 152-170.
[16] Mazyarchuk, V. and Fedko, I. 2016. The impact of corruption on economic growth. Available at: https://ti-ukraine.org/wp-content/uploads/2016/12/feao_corruption_economy_a5_short_final.pdf
[17] Mukhtarov, B. A. 2022. Manifestation of Corruption in Society. Zien Journal of Social Sciences and Humanities, 14: 156-166.
[18] Nagorna, A.M. 2019. Differentiation of population incomes and economic growth in Ukraine. Market Infrastructure, 35: 343-349.
[19] Parfentii, L.A. 2022. "Corruption as a threat to the economic security of Ukraine." In Current issues of ensuring the financial security of the state in the conditions of globalization: coll. theses add. International science and practice conference (Kharkiv, February 17, 2022), 192-196. Kharkiv, KhNUVS.
[20] Pygolenko, I.V. 2009. Bribery as a social phenomenon of modern society. Retrieved from https://ela.kpi.ua/handle/123456789/6212
[21] Rodchenko, S. and Govorukha, K. 2020. Corruption as a threat to the economic security of the national economy. Taurian Scientific Bulletin. Series: Economy, 3: 36-42.
[22] Samiylenko, H., Ivanova, N., Shaposhnikova, I., Vasylchenko, L., Solomakha, I. and Povna, S. 2021. Corruption as a threat to the economic security of the country. International Journal of Informatics and Network Security, 21(12): 316-322.
[23] Serednyak, T.K. 201. Ukraine against corruption: the economic front. Economic assessment of anti-corruption measures 2014-2018. Dnipro, Institute of Economic Research and Political Consultations.
[24] Sharma, C. and Mitra, A. 2019. Corruption and economic growth: Some new empirical evidence from a global sample. Journal of International Development, 31(8): 691-719.
[25] Sinha, A., Gupta, M., Shahbaz, M. and Sengupta, T. 2019. Impact of corruption in public sector on environmental quality: Implications for sustainability in BRICS and next 11 countries. Journal of Cleaner Production, 232: 1379-1393.
[26] Skrypnychenko, M.I., Korablina, S.O., Zhalilo, Y.A., Kryuchkova, I.V. and Zapatrina, I.V. 2018. Factors and trends of economic growth in Ukraine. Kyiv, National Academy of Sciences of Ukraine, State University "Institute of Economics and Forecasting. NAS of Ukraine”.
[27] Trepak, V. M. 2020. Combating corruption in Ukraine: theoretical and applied problems. Lviv, LNU named after I. Franko.
[28] Uddin, I. and Rahman, K. U. 2023. Impact of corruption, unemployment and inflation on economic growth evidence from developing countries. Quality and Quantity, 57(3): 2759-2779.
[29] Vysotska, I.B. and Vysotskii, V.M. 2017. Corruption in Ukraine: essence and consequences for the economy. Scientific Bulletin of the Lviv State University of Internal Affairs. Economic Series, 1: 37-46.
[30] Vysotska, I.B., Nagirna, O.V. and Silkin, O.S. 2019. Economic consequences of corruption in Ukraine. Black Sea Economic Studies: Scientific Journal, 42: 182-188.
[31] Yurkiv, N. 2018. Corruption component as a threat to the economic security of the state. Scientific Journal Economy and Region, 3(70): 19-27.
[32] National Agency for the Prevention of Corruption. 2023. "Guide to anti-corruption statistics." Available at: https://nazk.gov.ua/uk/koruptsijna-statystyka/
[33] President of Ukraine. 2021. "The strategy of economic security of Ukraine for the period until 2025, approved by the Decree of the President of Ukraine dated August 11, 2021 No. 347/2021." Available at: https://zakon.rada.gov.ua/laws/show/347/2021#Text
[34] Transparency International Ukraine. 2021. "Corruption Perception Index-2020." Available at: https://ti-ukraine.org/research/indeks-spryjnyattya-koruptsiyi-2020/
[35] Transparency International Ukraine. 2022. "No progress – Ukraine in the Corruption Perception Index-2021." Available at: https://ti-ukraine.org/news/bezprogresu-rezultat-ukrayiny-v-indeksi-spryjnyattya-koruptsiyi-2021/
[36] United Nations Office on Drugs and Crime. 2004. "United Nations Convention Against Corruption." Available at: https://www.unodc.org/documents/brussels/UN_Convention_Against_Corruption.pdf
[37] Voice of America. 2017. "'Ukraine's internal enemy' - report Helsinki Commission of the USA." Available at: https://ukrainian.voanews.com/a/vnutrishny-voroh/4073627.html
[38] WGI. 2022. "World Governance Indicators (WGI) measure of corruption." Available at: http://info.worldbank.org/governance/wgi/sc_country.asp
[2] Alfada, A. 2019. The destructive effect of corruption on economic growth in Indonesia: A threshold model. Heliyon, 5(10).
[3] Asteriou, D., Pilbeam, K., and Tomuleasa, I. 2021. The impact of corruption, economic freedom, regulation and transparency on bank profitability and bank stability: Evidence from the Eurozone area. Journal of Economic Behavior and Organization, 184: 150-177.
[4] Bahoo, S., Alon, I. and Paltrinieri, A. 2020. Corruption in international business: A review and research agenda. International Business Review, 29(4): 101660.
[5] Baranovsky, O.I. 2006. Bank safety: the problem of measurement. Available at: http://eip.org.ua/docs/EP_06_1_07_Uk.pdf
[6] Burakovsky, I. 2018. Ukraine against corruption: Economic front. Economic assessment of anti-corruption measures in 2014-2018. Available at: http://www.ier.com.ua/files/publications/Policy_papers/IER/2018/Anticorruption_%20Report_Ukr_.pdf
[7] Busol, O.Yu. 2015. Anti-corruption crime in Ukraine in the context of modern anti-corruption strategy. Kyiv, National Academy of Sciences of Ukraine, Institute of State and Law named after V.M. Koretsky.
[8] Ceschel, F., Hinna, A. and Homberg, F. 2022. Public Sector Strategies in Curbing Corruption: A Review of Literature. Public Organization Review, 22(3): 571-591.
[9] Drebee, H. A. and Abdul-Razak, N. A. 2020. The impact of corruption on the agriculture sector in Iraq: An econometrics approach. IOP Conference Series: Earth and Environmental Science, 553(1): 012019.
[10] Geets, V.M. 2017. Peculiarities of the interconnection of economic and political transformations on the way to the reconstructive development of the economy of Ukraine. Ukraine Economy, 10: 3-17.
[11] Hanlon, R. 2022. Regime legitimacy, human rights, and corruption. Available at: https://www.elgaronline.com/display/book/9781788971942/book-part-9781788971942-9.xml
[12] Hoinaru, R., Buda, D., Borlea, S.N., Veidean, V.L. and Achim, M.V. 2020. The impact of corruption and the shadow economy on economic and sustainable development. Are they 'grinding the wheels' or 'greasing the wheels'? Sustainability, 12(2): 481.
[13] Lemarchan, R. 2019. The state, the parallel economy and the change in the structure of patronage systems. Unstable Balance, 1: 149-170.
[14] Malanski, L. K. and Póvoa, A. C. S. 2021. Economic growth and corruption in emerging markets: does economic freedom matter? International Economics, 166: 58-70.
[15] Margalit, Y. 2019. Economic insecurity and causes of populism reviewed. Journal of Economic Perspectives, 33(4): 152-170.
[16] Mazyarchuk, V. and Fedko, I. 2016. The impact of corruption on economic growth. Available at: https://ti-ukraine.org/wp-content/uploads/2016/12/feao_corruption_economy_a5_short_final.pdf
[17] Mukhtarov, B. A. 2022. Manifestation of Corruption in Society. Zien Journal of Social Sciences and Humanities, 14: 156-166.
[18] Nagorna, A.M. 2019. Differentiation of population incomes and economic growth in Ukraine. Market Infrastructure, 35: 343-349.
[19] Parfentii, L.A. 2022. "Corruption as a threat to the economic security of Ukraine." In Current issues of ensuring the financial security of the state in the conditions of globalization: coll. theses add. International science and practice conference (Kharkiv, February 17, 2022), 192-196. Kharkiv, KhNUVS.
[20] Pygolenko, I.V. 2009. Bribery as a social phenomenon of modern society. Retrieved from https://ela.kpi.ua/handle/123456789/6212
[21] Rodchenko, S. and Govorukha, K. 2020. Corruption as a threat to the economic security of the national economy. Taurian Scientific Bulletin. Series: Economy, 3: 36-42.
[22] Samiylenko, H., Ivanova, N., Shaposhnikova, I., Vasylchenko, L., Solomakha, I. and Povna, S. 2021. Corruption as a threat to the economic security of the country. International Journal of Informatics and Network Security, 21(12): 316-322.
[23] Serednyak, T.K. 201. Ukraine against corruption: the economic front. Economic assessment of anti-corruption measures 2014-2018. Dnipro, Institute of Economic Research and Political Consultations.
[24] Sharma, C. and Mitra, A. 2019. Corruption and economic growth: Some new empirical evidence from a global sample. Journal of International Development, 31(8): 691-719.
[25] Sinha, A., Gupta, M., Shahbaz, M. and Sengupta, T. 2019. Impact of corruption in public sector on environmental quality: Implications for sustainability in BRICS and next 11 countries. Journal of Cleaner Production, 232: 1379-1393.
[26] Skrypnychenko, M.I., Korablina, S.O., Zhalilo, Y.A., Kryuchkova, I.V. and Zapatrina, I.V. 2018. Factors and trends of economic growth in Ukraine. Kyiv, National Academy of Sciences of Ukraine, State University "Institute of Economics and Forecasting. NAS of Ukraine”.
[27] Trepak, V. M. 2020. Combating corruption in Ukraine: theoretical and applied problems. Lviv, LNU named after I. Franko.
[28] Uddin, I. and Rahman, K. U. 2023. Impact of corruption, unemployment and inflation on economic growth evidence from developing countries. Quality and Quantity, 57(3): 2759-2779.
[29] Vysotska, I.B. and Vysotskii, V.M. 2017. Corruption in Ukraine: essence and consequences for the economy. Scientific Bulletin of the Lviv State University of Internal Affairs. Economic Series, 1: 37-46.
[30] Vysotska, I.B., Nagirna, O.V. and Silkin, O.S. 2019. Economic consequences of corruption in Ukraine. Black Sea Economic Studies: Scientific Journal, 42: 182-188.
[31] Yurkiv, N. 2018. Corruption component as a threat to the economic security of the state. Scientific Journal Economy and Region, 3(70): 19-27.
[32] National Agency for the Prevention of Corruption. 2023. "Guide to anti-corruption statistics." Available at: https://nazk.gov.ua/uk/koruptsijna-statystyka/
[33] President of Ukraine. 2021. "The strategy of economic security of Ukraine for the period until 2025, approved by the Decree of the President of Ukraine dated August 11, 2021 No. 347/2021." Available at: https://zakon.rada.gov.ua/laws/show/347/2021#Text
[34] Transparency International Ukraine. 2021. "Corruption Perception Index-2020." Available at: https://ti-ukraine.org/research/indeks-spryjnyattya-koruptsiyi-2020/
[35] Transparency International Ukraine. 2022. "No progress – Ukraine in the Corruption Perception Index-2021." Available at: https://ti-ukraine.org/news/bezprogresu-rezultat-ukrayiny-v-indeksi-spryjnyattya-koruptsiyi-2021/
[36] United Nations Office on Drugs and Crime. 2004. "United Nations Convention Against Corruption." Available at: https://www.unodc.org/documents/brussels/UN_Convention_Against_Corruption.pdf
[37] Voice of America. 2017. "'Ukraine's internal enemy' - report Helsinki Commission of the USA." Available at: https://ukrainian.voanews.com/a/vnutrishny-voroh/4073627.html
[38] WGI. 2022. "World Governance Indicators (WGI) measure of corruption." Available at: http://info.worldbank.org/governance/wgi/sc_country.asp
Published
2023-12-20
How to Cite
MAZARAKI, Anatoly; MELNYK, Tetiana; SEROVA, Lyudmila.
The Impact of Corruption on the Economic Security of the State.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 14, n. 2, p. 269 - 282, dec. 2023.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/8213>. Date accessed: 23 nov. 2024.
doi: https://doi.org/10.14505/tpref.v14.2(28).07.
Section
Articles
Non-Exclusive License under Attribution 4.0 International Public License (CC BY 4.0):
This ‘Article’ is distributed under the terms of the license CC-BY 4.0., which lets others distribute, remix, adapt, and build upon this article, even commercially, as long as they credit this article for the original creation. ASERS Publishing will be acknowledged as the first publisher of the Article and a link to the appropriate bibliographic citation (authors, article title, volume issue, page numbers, DOI, and the link to the Published Article on ASERS Publishing’ Platform) must be maintained.