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Regional Economics: Theory and Practice
 

The shadow economy's impact on the sustainability of the regional business development

Vol. 22, Iss. 12, DECEMBER 2024

Received: 7 May 2024

Received in revised form: 21 June 2024

Accepted: 6 July 2024

Available online: 16 December 2024

Subject Heading: SUSTAINABLE DEVELOPMENT OF REGIONS

JEL Classification: E26, H26, R11

Pages: 2342-2353

https://doi.org/10.24891/re.22.12.2342

Ol'ga S. KOLESNIKOVA Amur State University (AmSU), Blagoveshchensk, Amur Oblast, Russian Federation
kolesnikova.o.s@yandex.ru

https://orcid.org/0000-0002-1389-7035

Subject. This article discusses the problems of strategic planning and entrepreneurship as one of the drivers of socio-economic development at the levels of the country and regions.
Objectives. The article aims to analyze the interrelations and interdependencies between the level of the shadow economy and the sustainability of the development of regional entrepreneurial systems.
Methods. For the study, I used economic and statistical methods.
Results. The article finds that the shadow economy has a significant impact on the sustainability of the development of regional entrepreneurial systems, including the possibilities of functioning of entrepreneurial structures, as well as on the state of the external (regional) environment. In turn, the entrepreneurial system directly affects the shadow sector, increasing or neutralizing the incentives of various economic agents to develop their activities outside the formal economy.
Conclusions. The existence of a two-way relationship between the shadow economy and the entrepreneurial system of the region predetermines the need to take into account the scale of the shadow sector when developing measures to achieve the strategic socio-economic and environmental goals of the constituent entities of the Russian Federation. The lack of such accounting has a negative impact on the objectivity of assessing the effectiveness of regional socio-economic policy. The development of regional strategies and programmes, taking into account the established interrelations, will make it possible to legalize the funds concentrated in the shadow sector and use them to implement measures aimed at ensuring the sustainability of the development of systems at different levels.

Keywords: informal economy, sustainability, development, regional entrepreneurial system, Sustainable Development Goals

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