Archive 2001

  • 04.07.2001

    Implicit Subsidies in Ukraine: Estimation, Developments and Policy Implications


    This paper considers different kinds of implicit subsidies to the economy, such as privileged taxation, various non-payments, non-monetary transactions, etc. Though implicit subsidies may be quite common in advanced economies as well, for example in the form of tax privileges or preferential credits, the problem of implicit subsidies in transition economies is especially acute, due to their non-transparent and pervasive character. After a review of the various types of implicit subsidies being granted and of the role of the state in their expansion, the total amount of implicit subsidies is approximately estimated. Furthermore, some specific questions are addressed, such as subsidies within certain sectors of the economy, across enterprises of various form of ownership, and regional differences. The paper ends with some policy recommendations.

    Attached file  (367.2 kb)
    Authors:  Legeida Nina
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