ECONOMIC SECURITY AND SHADOW ECONOMY
The article contains the material revealing the content of the concept of economic security, the economic aspects of leaving entrepreneurs in the shadow sector of the economy are considered. According to the authors, for the subject of market economy, economic security is a situation when its economic interests are realized and there are no threats in the form of losses of economic benefits in certain economic relations. In terms of economic security, the economic interest of an economic entity is realized in a sufficient volume from its point of view. Economic security depends on both the economic entity and the state. Whether an economic entity will engage in entrepreneurial activity in the shadow or non-shadow sectors of the economy or will cease the relevant activity depends on the transformation and transaction costs. With high transaction costs due to inefficient state intervention in the economy, economic entities that have decided to conduct business can realize their economic interests in the shadow sector. In this case, the shadow sector of the economy can be considered as a form that provides economic security of the subject of the market economy. The article points out that the factors causing the departure of economic entities in the shadow sector of the economy do not operate automatically, but within certain boundaries. These boundaries are related to taxes, transformation and transaction costs of production. In case of their excessive growth and negative influence on realization of economic interests of subjects of market economy they within certain limits will promote growth of shadow economic relations. The paper substantiates the conclusion that due to the dependence of the amount of taxes and transaction costs on the state, the ratio of products produced in the shadow sector of the economy to the total volume of production can be considered as an indicator of the effectiveness of state intervention in the economy.