Journal of Security and Sustainability Issues

The paper has investigated the patterns of defence expenditure in the Baltic countries, such as Lithuania, Latvia and Estonia during the period of 2004-2018. Distribution of defence expenditure by main category has been analysed and the main tendencies have been provided. The author has done this by applying total expenditure and decomposition approaches. Firstly, the author has calculated the intensity rate of defence expenditure‘s structural changes in order to assess which country’s defence spending structure has been more dynamic over the period analysed. Secondly, Finger-Kreinin indicator has been used to compare defence expenditure distributions and determine their dissimilarities among the countries under consideration. The author believes that the research highlights key structural trends of defence expenditure and could be helpful for policy makers.

The article describes the research of the development of the shadow economy, defines its essence, discloses main reasons for its occurrence; describes its structure, Identifies factors that promote its development; evaluates the system of combating measures and reveals the results of controlling it. Policy implications are being suggested.