LATENT INFLUENCES OF CYBERCRIMES, CORRUPTION AND SHADOW ECONOMY OPERATIONS ON THE ACTIVITIES OF ECONOMIC ENTITIES: ANALYSIS OF THEORY AND PRACTICE

Abstract

This study delves into the latent effects of illegal practices - cybercrime, corruption, and shadow economy operations - on the activities of economic entities. To analyse its theoretical aspects, a dataset of scientific publications indexed in the Scopus database was selected based on keywords such as “cybercrime,” “corruption,” “shadow economy,” “business,” and “latent.” They were analysed and visualised using the VOSviewer software. The result showed five thematic clusters defining the primary research directions concerning the impact of illegal practices. The red group emphasises digital technologies, cybersecurity, artificial intelligence, data analytics, and network security. The green one is centred on economic growth, resilience, shadow economy, and taxation, stressing the need to examine illegal economic processes and their implications for macroeconomic indicators and public policy efficiency. The blue cluster addresses transparency, anti-corruption measures, institutional quality, and public governance, showcasing the importance of institutional capacity-building for fostering trust and accountability in both public and private sectors. Meanwhile, the yellow and purple groups explore secondary topics, including gender aspects, ethics, public policy, e-governance, entrepreneurship, and the human and social implications of COVID-19. The theoretical findings underline the interconnected nature of corruption, cyber threats, and shadow economy practices, demonstrating their cumulative effect. Corruption undermines trust, distorts market mechanisms, and exacerbates economic inefficiencies, as evidenced by high-profile scandals like the Petrobras case in Brazil and Siemens' bribery revelations. Shadow economy practices, such as tax evasion, further erode public policy efficiency and diminish state revenues. Concurrently, cyber threats, exemplified by ransomware attacks on Colonial Pipeline and Garmin or large-scale data breaches affecting companies like Target, disrupt digital infrastructure and necessitate the adoption of innovative cybersecurity strategies. The analysis also highlights regional case studies, such as Ukraine’s cyberattacks on critical infrastructure and government systems, revealing vulnerabilities in national and business security frameworks. Additionally, corruption and shadow economy practices in Ukraine remain substantial barriers to business growth, evidenced by the exposure of systemic bribery schemes and judicial inefficiencies. This research contributes to understanding the latent dimensions of illegal practices, offering actionable insights for policymakers and business leaders to address the multidimensional challenges posed by corruption, cybercrime, and the shadow economy.