STATE OF THE SHADOW ECONOMY IN THE LOGGING INDUSTRY AND ITS INSTITUTIONAL SHORTCOMINGS

DOI 10.32651/224-27

Issue № 4, 2022, article № 4, pages 27-31

Section: Problems of efficient management

Language: Russian

Original language title: СОСТОЯНИЕ ТЕНЕВОЙ ЭКОНОМИКИ В ЛЕСОЗАГОТОВИТЕЛЬНОЙ ПРОМЫШЛЕННОСТИ И ЕЕ ИНСТИТУЦИОНАЛЬНЫЕ НЕДОРАБОТКИ

Keywords: ILLEGAL HARVESTING, LOGGING INDUSTRY, SHADOW ECONOMY, TRANSACTION COSTS, INSTITUTIONAL RELATIONS, FOREST MANAGEMENT, STATE, BUSINESS, POLITICS

Abstract: All state strategies for the development of the forest complex contain mainly quantitative indicators, that is, a change in the amount per unit of time, for example, logging, forest reproduction, timber harvesting per year, and so on. But, the trend of declining forest quality is completely ignored, due to the use of an extensive forest management model. Therefore, most of the operating areas transferred under the lease agreement for timber harvesting lose their original value after the first years of use. Obviously, the inaction of the institutional policy of the state in the forest industry impedes the rational use of forest resources and leads to severe, ineffective restrictions on the economic activities of forest users. Such an institutional environment does not reduce the size of the shadow economy in the logging industry. To encourage effective entrepreneurship in the forest sector, systemic measures are required in the system of national, sectoral and regional forest policies, which implies the need for thorough institutional analysis.

Authors: Davydova Galina Vasilevna, Tagiev Mikail Ismailovich