Shadow economy as a threat to national security

Abstract

The shadow economy is inherent in the economic system of any state without exception. However, depending on the scale, it affects the economic and sociopolitical processes in a given country in different ways. In the literature, the allowable size of the shadow economy is 5-10% of GDP, this scale does not cause significant changes or violations in the socio-economic processes of the state. An increase in the size of more than 30% of GDP is evidence of the existence in society of a reproductive system of shadow economic relations, which leads to an imbalance in the economy (Borusevych, 2012).