Abstract:

The pace of development of the digital economy is growing rapidly from year to year. Internet, related digital technologies, as well as automation processes are widespread and change the entire system of economic activity. In the new conditions, it is necessary to assess the effects of digitalization, their impact on human life and business activities. In the event of risks and threats to economic security, the state should act as a regulator and include compensatory protection mechanisms. The article reveals the nature of the interaction of the digital economy, institutional changes and economic security. It is proved that the root causes of risks and threats to economic security, such as an increase in costs for each group of subjects due to excessive load and the institutional manifestation of regulatory arbitrage, the change in the labor market and the release of labor resources, intensive development of cybercrime are inadequate institutional structure of society, the imbalance of formal and informal institutions, their low efficiency. The analysis of positive (technological, economic and social) effects of digitalization is made, and also the risks and threats which are manifestation of negative effects of digital development are systematized.