Ukraine: Selected Issues

Fund, International Monetary

doi:10.5089/9781475592498.002

Cited by 6 publications

(1 citation statement)

References 16 publications

(17 reference statements)

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“…Going forward, the ongoing military conflict and instability will likely further weaken the Ukrainian economy, likely leading to a pronounced decrease in investment, employment, wages, and productivity. The destruction caused by the war will have long-term consequences, with the Ukrainian government estimating post-war reconstruction costs to exceed $750 billion [5], corresponding to over 3.5 times the pre-war GDP of the country [6]. Once the reconstruction efforts start, a large volume of expenditures will need to be channeled through public procurement into the private sector, either in the form of purchased goods or subcontracted services.…”

Section: Introductionmentioning

confidence: 99%

Governance in times of war: Public procurement in Ukraine

Klymak,

Vlandas

2024

PLoS ONE

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Wars increase the importance of government functions, yet they also constrain their ability to fulfill these functions. In particular, wars hinder economic activity, thereby limiting governments’ capacity to raise the revenues required to maintain stability and meet the heightened needs of citizens. Effective governance is therefore severely undermined in times of war. However, empirical research on how wars affect government procurement is limited. We address this gap by exploring procurement dynamics using over one million public purchases of goods and services in Ukraine between January 2021 and October 2022, corresponding to the Russian invasion of the country. We document a large fall in the total number of purchases since the invasion and an increase in the share of successfully completed procurements. This higher success rate comes at the cost of efficiency, with the government paying more to source their goods. This can be attributed to the decline in the share of government purchases via online auctions and the reduced competition. Thus, the prioritization of the quick acquisition of goods and services forced governments to sacrifice cost-effectiveness. In summary, the war did not lower the successful purchasing of private goods and services, and transparency was not decreased. However, the trade-off of speed and transparency for greater costs may become increasingly problematic with the growing budget constraints resulting from the war. This article contributes to our understanding of the Ukrainian government choices during the early phase of the war. The results also highlight the importance of ensuring procurement efficiency and transparency when the war ends as reconstruction efforts will require substantial increases in government procurements.

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Section: Introductionmentioning

confidence: 99%

Governance in times of war: Public procurement in Ukraine

Klymak,

Vlandas

2024

PLoS ONE

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F: International and National Economies

2017

World Banking Abstracts

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The impact of corruption on the shadow labor market

Kirzhetska¹,

Kirzhetskyy²

2021

Galic'kij ekon. visn.

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In this paper we analyze how corruption affects the shadow labor market and describe the facts of the relationship between corruption and the factors shaping shadow employment. Confirmation of relationship between the spread of corruption and shadow employment in Ukraine is the objective of this investigation, and its results are presented in this paper. In order to achieve the set goal, the authors developed scientific tasks to determine the factors stimulating shadow employment and to carry out correlation and regression analysis of the relationship between the Corruption Perception Index in Ukraine and the indicators stimulating the growth of shadow employment in Ukraine. Despite the absolute negative effect of the excessive spread of both corruption and shadow labor market on national economies, the authors suggest that corruption is an impulse for the growth of shadow labor market. The paper is based on the hypothesis that the individual motivation for participation in undeclared labor activities is of common interest for both employers and employees. Therefore, the authors describe the spread of the shadow labor market by means of indicators, which form shadow employment from the sidelines of supply and demand in this market. Thus, it is defined that the factors that form the shadow labor market from the supply sideline include: the level of unemployment; the level of migration; the level of wages and social security. The factors that form shadow employment from the demand sideline include: the level of tax burden on wages; staff turnover and the dynamics of the population level. The carried out regression analysis between the indicators of corruption and the factors that form shadow employment on the demand and supply sidelines shows that corruption has a significant impact on the level of unemployment in Ukraine, labor external migration, the level of poverty among the working population, the level of social protection and the level of tax burden. Therefore, the reduction in the corruption level will have a significant impact on the socio-economic indicators that incite shadow employment from both demand and supply sidelines on the unregistered labor. Our conclusions indicate that in order to improve the socio-economic indicators of economic development, which have an impact on the spread of the shadow labor market, the Government first of all should reduce the level of corruption in the economy.

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Ukraine: Selected Issues

Abstract: This Selected Issues paper on Ukraine was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on March 7, 2017.

Cited by 6 publications

References 16 publications

Governance in times of war: Public procurement in Ukraine

Governance in times of war: Public procurement in Ukraine

F: International and National Economies

The impact of corruption on the shadow labor market

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