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Theoretical and methodological fundamentals in formation of economic security in the field of public procurement

Author

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  • Valerii Darahan
  • Andrii Shynkevych

Abstract

This article defines measures aimed at forming economic security in the field of public procurement in Ukraine. It was established that despite the large number of publications related to the study of anti-corruption in the field of public procurement, the impact of such activities on the national economy of Ukraine and the economic security of Ukraine as a whole have not been studied. It is given the classification of measures to prevent corruption in the field of public procurement, the impact of such measures on the formation of economic security in the field of public procurement in Ukraine is determined. According to the results of the study it is established that: 1) the entrepreneur and representatives of customers in most cases add 20 to 40 % of “kickbacksˮ to the value of the procurement before the procurement procedure, which further affects their cost, which in turn directly affects not only on the financial condition of state structures and enterprises, but also on the functioning of the national economy as a whole; 2) the most promising areas of prevention of corruption in the field of public procurement, both in Ukraine and in some countries, are: improving the legal regulation of public procurement procedures; organizational and legal support of public and state control in the field of public procurement; strengthening measures of responsibility for violations related to public procurement; 3) the development of an effective mechanism for combating corruption in the field of public procurement is not only a promising area for stabilizing the economy of Ukraine, but it also will create real preconditions for its development. The proposed measures and proposals to prevent corruption in the field of public procurement can be used during further research on this issue, as well as in the process of forming a strategy of economic security in the field of public procurement

Suggested Citation

  • Valerii Darahan & Andrii Shynkevych, 2022. "Theoretical and methodological fundamentals in formation of economic security in the field of public procurement," Philosophy, Economics and Law Review Articles, Philosophy, Economics and Law Review, vol. 2(1), pages 161-174, May.
  • Handle: RePEc:cxt:phelrj:v:2:y:2022:i:1:p:161-174
    DOI: https://doi.org/10.31733/2786-491X-2022-1-161-174
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    References listed on IDEAS

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    1. Jiancai Pi, 2021. "An investigation of seeming favoritism in public procurement," Manchester School, University of Manchester, vol. 89(1), pages 128-137, January.
    2. B. Cesi & M. Lorusso, 2020. "Collusion in public procurement: the role of subcontracting," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(1), pages 251-265, April.
    3. Toeba Thato, 2018. "Corruption in Public Procurement in Lesotho," The Law and Development Review, De Gruyter, vol. 11(2), pages 397-431, December.
    4. Arkadiusz Borowiec, 2019. "Corrupt Practices in Public Procurement: Evidence from Poland," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Ugur Can (ed.), Eurasian Economic Perspectives, pages 71-82, Springer.
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