Abstract
In the knowledge-based economy, the issue of assessing the financial policy effectiveness and its impact on the level of socioeconomic development of the country and the population’s welfare is acute. Maximizing the effectiveness of financial policy is possible while ensuring financial safety of the country. Market management conditions create the existence of a shadow economy, which adversely affects the development and functioning of the global financial system in general and of each state. The purpose of the chapter is to conduct a comprehensive assessment of the financial safety of states on the basis of determining the socioeconomic position of the country considering the shadow economy and revealing its impact on the level of the population’s welfare. To determine the financial safety of states, a methodology has been developed for calculating the total standardized indicator for assessing the socioeconomic position of countries considering the shadow economy by means of specially created system of indicators. Approbation of a technique is carried out on a selection of 45 countries in 2015. Based on the developed technique, a rating of countries was built. It was revealed that the higher the country’s financial safety, the higher the population’s welfare.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Amendola, A., & Dell’Anno, R. (2010). Institutions and human development in the Latin America shadow economy. Estudios en Derecho y Gobierno, 3(1), 9–25.
Andruseac, G. (2015). Economic security – New approaches in the context of globalization. CES Working Papers, VII(2).
Buehn, A., & Schneider, F. (2012). Shadow economies around the world: Novel insights, accepted knowledge, and new estimates. International Tax and Public Finance, 19, 139–171.
Dell’Anno, R. (2007). The shadow economy in Portugal: An analysis with the MIMIC approach. Journal of Applied Economics, 10, 253–277.
Dell’Anno, R., Gomez-Antonio, M., & Alanon Pardo, A. (2007). Shadow economy in three different Mediterranean countries: France, Spain and Greece. A MIMIC approach. Empirical Economics, 33, 51–84.
Dreher, A., & Schneider, F. (2009). Corruption and the shadow economy: An empirical analysis. Public Choice, 144(2), 215–277.
Dreher, A., Kotsogiannis, C., & McCorriston, S. (2009). How do institutions affect corruption and the shadow economy? International Tax and Public Finance, 16(4), 773–796.
Ene, C. M., & Stefanescu, A. (2011). Size and implication of underground economy in Romania – A MIMIC approach. Annales Universitatis Apulensis Series Oeconomica, 13(1), 77–86.
Epstein, A. (1939). Government’s responsibility for economic security. The Annals of the American Academy of Political and Social Science, 206, 81–85.
Feld, L. P., & Frey, B. S. (2007). Tax compliance as the result of a psychological tax contract: The role of incentives and responsive regulation. Law and Policy, 29(1), 102–120.
Friedman, E., Johnson, S., Kaufmann, D., & Zoido-Lobatón, P. (2000). Dodging the grabbing hand: The determinants of unofficial activity in 69 countries. Journal of Public Economics, 76(4), 459–493.
Giles, D. E. A. (1999). Measuring the hidden economy: Implications for econometric modelling. Economic Journal, 109(3), 370–380.
Grigoreva, E., & Garifova, L. (2015). The economic security of the state: The institutional aspect. Procedia Economics and Finance, 24, 266–273.
Hacker, J. S., Huber, G., Nichols, A., Rehm, P., Schlesinger, M., Valletta, R. G., & Craig, S. (2012). The economic security index: A new measure for research and policy analysis. Working Paper of the Federal Reserve Bank of San Francisco, 21.
Johnson, S., Kaufmann, D., & Zoido-Lobatón, P. (1998). Regulatory discretion and the unofficial economy. The American Economic Review, 88(2), 387–392.
Kucera, D., & Roncolato, L. (2008). Informal employment: Two contested policy issues. International Labor Review, 147(3), 321–348.
Lasar, D. T., Moldovan, B. A., & Pavel, A. (2008). Underground economy’s measurement methods. Transylvanian Review of Administrative Sciences, 23E, 43–58.
Nchor, D., & Adamec, V. (2015). Unofficial economy estimation by the MIMIC model: The case of Kenya, Namibia, Ghana and Nigeria. Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63, 2043–2049.
Popkova, E. G., Menshchikova, V. I., & Sayapin, A. V. (2015). Economic security of modern Russia: Current state and trends. Mediterranean Journal of Social Sciences, 6(4), 48–53.
Ripsman, N. M., & Paul, T. V. (2010). Globalization and the national security state: Political science. New York: Oxford University Press.
Schneider, F., & Buehn, A. (2016). Estimating the size of the shadow economy: Methods, problems and open questions. IZA Discussion Paper, no. 9820 (March).
Semjonova, N. (2016). Financial security in the Baltic states: Comparison with selected EU countries. Economics and Business, 29(1), 90–96.
Tanzi, V. (1999). Uses and abuses of estimates of the underground economy. Economic Journal, 109(3), 338–347.
Teobaldelli, D. (2011). Federalism and the shadow economy. Public Choice, 146(3), 269–269.
Thomas, J. J. (1992). Informal economic activity. In LSE, handbooks in economics. London: Harvester Wheatsheaf.
Yashina, N., Ginzburg, M., & Pronchatova-Rubtcova, N. (2015). Socio-economic situation of the countries and their public debt: Perspective 2015. In European financial systems 2015, Proceedings of the 12th international scientific conference (pp. 696–703). Brno: Masaryk University.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this paper
Cite this paper
Yashina, N., Petrov, S., Pronchatova-Rubtsova, N., Kashina, O. (2020). Comprehensive Assessment of Financial Safety of the States Taking into Account Social, Economic, and Shadow Indicators. In: Bilgin, M., Danis, H., Karabulut, G., Gözgor, G. (eds) Eurasian Economic Perspectives. Eurasian Studies in Business and Economics, vol 13/1. Springer, Cham. https://doi.org/10.1007/978-3-030-40375-1_6
Download citation
DOI: https://doi.org/10.1007/978-3-030-40375-1_6
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-40374-4
Online ISBN: 978-3-030-40375-1
eBook Packages: Economics and FinanceEconomics and Finance (R0)