INFLUENCE OF THE SHADOW ECONOMY ON THE OBJECTS OF ECONOMIC SECURITY OF THE STATE

Abstract

The issue of shadow economic activity and its impact on the country's economic security remains relevant, as illegal economic transactions pose a serious threat to the stability and development of our economy. The shadow economy, hidden from state control, undermines the country's financial foundation. It distorts statistical data, complicates economic forecasting, and creates an unequal playing field for doing business. Subject: Identifying the factors underlying the informal economy and assessing their impact on the country's economic security. Objective: A comprehensive study of the determinants of the shadow economy, an analysis of their interrelationships, and their impact on the country's economic security. Economic security should be studied through the prism of such categories as danger, challenge, threat, and risk, which demonstrate the interrelationships between them. The impact of key factors on the shadow economy, including the tax burden, corruption, informal employment, and illegal withdrawal of funds, is studied. Research design: The author attempts to study the factors that give rise to the shadow economy and assess their consequences for the economic security of the state. The study relied on analytical methods, logical reasoning, structural modeling, and tabular methods. Results: The factors contributing to the development of the shadow economy were identified and analyzed, their negative impact was assessed, and the country's economic security was assessed, with the key elements of this security being identified. Proposals for combating the shadow economy were developed.