OFFSHORIZATION OF THE ECONOMY IN THE CONSTRUCTION OF FINANCIAL SECURITY OF UKRAINE

Abstract

Features of modern development of economic systems are considered – intensification of processes of offshorization of economy that causes urgency of research subjects. The purpose of the study is to analyze the theoretical aspects of the offshore process and establish its impact on the financial security of the state. In the course of the research general and special methods, methods of theoretical generalization, dialectical cognition, abstraction, induction, synthesis, deduction, methods of statistical and economic analysis were used. The study analyzed the impact of round-tripping operations on foreign direct investment in Ukraine, the outflow of Ukrainian capital through offshore zones and pointed out the threatening volumes of offshoring of the modern economy. Approaches to eliminating the negative consequences of the operation of offshore zones are considered. The issue of motivation of capital flight from Ukraine is revealed. Theoretical analysis of the process of offshorization in the system of economic security of the state is carried out, the main reasons, advantages and disadvantages of this process for the state economy are established. Theoretical aspects of the offshorization process in the financial security system of the state are analyzed. The primary threats to offshoring for financial security and the state's economy as a whole have been identified. It was found that the bulk of the withdrawn capital is returned to the country's economy in the form of "round-trip" investments. The ratio of the amount of withdrawn capital and external debt of different countries is analyzed and it is established that Ukraine is one of the leading countries in this indicator. Recommendations for deoffshorization of the country's economy and ensuring its financial security are provided. The prospect of further research in this area is to identify at the current stage of the world economy the impact of offshore on the economic situation in some countries and on the company's business reputation, as usually the main purpose of offshore zones is to conceal property, tax evasion, illegal cross-border schemes and operations. On the other hand, further development of tax havens and offshore can lead to improved business processes of foreign economic activity, investment and capitalization, as well as the preservation of corporate assets and stability in risk management, however, only if transparent and flexible policies consistent with legislative base of the state.