EKONOMISTI
The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.52340/EKONOMISTI

DOI: 10.36172/EKONOMISTI

E ISSN 2346-8432
Print ISSN 1987-6890

Journal number 4 ∘ Nazira Kakulia ∘ Nodar Kiladze ∘

International Practice of Interest Rate Transmission Mechanisms and Real Estate Market Dynamics Analysis

DOI: 10.52340/ekonomisti.2025.04.01 Expanded summary The impact of monetary policy on the real estate sector is a complex relationship of various transmission mechanisms and market dynamics. Monetary policy plays a crucial role in shaping real estate markets, since their contribution to the economy is significant. The real estate sector accounts for roughly 16% of US GDP through residential investments and housing services, making it a critical focus for macroeconomic and financial system stability. Traditionally, the primary transmission channel through which monetary policy affects real estate is the interest rate channel. Changes in the federal funds rate impact mortgage rates, which in turn influence housing affordability and investment attractiveness. Lower interest rates generally reduce borrowing costs, stimulate housing demand, and lead to higher property prices. The credit channel, where monetary expansion increases bank liquidity and credit
2025-12-11

Journal number 4 ∘ Iuri Ananiashvili ∘ Lia Totladze ∘ Mamuka Khuskivadze ∘

The Impact of Sustainable Urbanization on Social and Ecological Indicators: An Empirical Study of Georgia

DOI:10.52340/ekonomisti.2025.04.02 Expanded Summary The article presents a theoretical and empirical examination of urbanization, as a major contemporary global transformation, exploring its complex, non-linear relationship with a social, economic, and environmental characteristics. The study emphasis that urbanization is not merely a consequence of development, but functions as a critical determinant influencing income distribution, equity, ecological stability, and the trajectory of national progress—a role corroborated by its designation within the Sustainable Development Goals (SDGs) framework. The paper\\\\\\\\\\\'s primary objective is to provide an empirical investigation of these multidimensional effects, with a specific application to the regional context of Georgia. The paper highlights the work of classical economists and modern empirical research: Kuznets\\\\\\\\\\\' Hypothesis and the Urban Environmental Kuznets Curve (UEKC). The article
2025-12-11

Journal number 4 ∘ Mzia Shelia ∘

Changes in the attitudesof students of higher education institutions to childbirthin Georgia in 2013-2023

DOI:10.52340/ekonomisti.2025.04.03 Annotation. Georgia is a small country with a truncated reproduction regime. Solving demographic problems requires carrying out an active scientific research on the reproductive attitudes, behavior, and values of the youth, especially studentsof higher education institutions. The goal of our research was to identify the changes that have occurred over the past decade in students\\\\' family values and attitudes towards childbearing. The paper is based on selective sociological surveys conducted by the Institute of Demography and Sociology in 2013 and 2023 with the active participation of its author, as well as on the existing statistical information and scientific works of researchers. The research revealed deteriorated indicators of demographic behavior and attitudes among studentsthat which will not allow the country to overcome the demographic crisis in the near future. Students are mainly oriented towards creating a family of two children.
2025-12-11

Journal number 4 ∘ Nazira Kakulia ∘ Malkhaz Chikobava ∘ Valeri Arghutashvili ∘ Davit Amashukeli ∘

Historical Review of the Development of Circular Economy and Its Synergy with the Phenomenon of Industrialization

DOI:10.52340/ekonomisti.2025.04.04 Expanded Summary This paper explores the various interpretations of the concept of "circular economy" and highlights the main approaches to its formation. The aim of the study is to analyze the different methodological approaches for evaluating the development of circular economy in the socio-economic space, which is essential for the further development and testing of a new evaluation tool, as well as reducing the insufficient and weak development of the methodological approach to the circular economy concept in Georgian language sources. In 1987, the Brundtland Report, known as "Our Common Future," was published. The report was released by the World Commission on Environment and Development (WCED) and named after the commission\\\\'s then-chairman, Gro Harlem Brundtland, the Prime Minister of Norway. In this report, sustainable development was officially defined for the first time and laid the groundwork for the current understanding of
2025-12-11

Journal number 4 ∘ Tengiz Verulava ∘ Tinatin Tsaava ∘

The Impact of Pharmaceutical Marketing on Health Systems: Ethical Challenges and Regulatory Perspectives

DOI: 10.52340/ekonomisti.2025.04.05 Expanded Summary Pharmaceutical marketing is a complex and influential component of the global healthcare system. It plays a crucial role in shaping prescribing practices, drug utilization patterns, and public perceptions of medicines. However, its influence raises significant ethical, regulatory, and policy challenges. While promotion aims to disseminate information about pharmaceutical products, its primary purpose is commercial — to expand market share and increase profits. This commercial motive can conflict with public health goals, leading to over-prescription, inappropriate use of medicines, and increased healthcare costs. One of the most significant issues is the impact of promotion on prescribers. Research shows that pharmaceutical marketing often emphasizes new products regardless of their therapeutic advantage over existing treatments. A French review of 1,038 new drugs and indications (2006–2015) found that only
2025-12-11

Journal number 4 ∘ Ekaterina Zakaradze ∘ Nana Rusadze ∘

PUBLIC ADMINISTRATION IN THE DIGITAL AGE: THE PSYCHOLOGICAL ASPECT

DOI:10.52340/ekonomisti.2025.04.06 Expanded Summary The article aims to analyze the psychological aspects of public administration in the digital age, focusing on the impact of emotional intelligence, stress management, and organizational culture on governance processes. Using Georgia as a case study, it offers recommendations for implementing effective psychological practices. The 21st century has emerged as an era in which technological progress shapes not only the economy and communication but also systems of governance. The rise of digital governance demands not only the adoption of technical solutions but also a deep understanding of human psychology, behavior, and motivation. In the 1990s, public administration in Georgia began transitioning from the USSR’s bureaucratic system to a model of democratic governance, though the post-Soviet legacy was deeply embedded in the governance culture. Psychological aspects of public administration were largely overlooked during this
2025-12-11

Journal number 4 ∘ Rusudan Dalakishvili ∘ Ketevan Chiabrishvili ∘ Shalva Kvezereli ∘

Economic Security in the Context of Globalization - New Challenges and Modern Visions

DOI: https://doi.org/10.52340/ekonomisti.2025.04.07 Expanded Summary The present article is dedicated to the contemporary interpretation of the economic security concept in the context of globalization. The authors - Ketevan Chiabrishvili, Rusudan Dalakishvili, and Shalva Kvezereli - examine how the understanding of Economic security is changing against the backdrop of international political-economic environmental transformation. The article aims to identify the impact of globalization on a countrys economic security and reveal new approaches. Economic security indicates the state of interstate relations and is crucial for a countrys sustainable growth. In todays world, conflicts often arise not from ideological clashes but from competition for resources. Economic security has become a vital tool for states in their interactions with others and for exerting influence. Theorists interpret the role of economic power in international relations differently. For instance,
2025-12-11

Journal number 4 ∘ Nugzar Todua ∘ Grigol Kartsivadze ∘

Student attitudes towards the use of ChatGPT in higher education

Expanded Summary The article explores the application of ChatGPT, an artificial intelligence technology, within the context of higher education. Based on the analysis of significant literature on the research topic, the main variables of the study are presented: perceived ease of use of ChatGPT, perceived usefulness of using ChatGPT, attitude towards ChatGPT, behavioral intention to use ChatGPT, and Usage behavior of ChatGPT. The corresponding hypotheses are formulated and a research model is developed. The research design was based on a quantitative research method, namely, a consumer survey, and a questionnaire consisting of several structured questions was selected as a research tool. The study measured variables and relevant chosen items based on the literature. A five-point Likert scale is used in the questionnaire. The survey was conducted using the electronic interview method. The research uses a self-administered survey method. The research\\'s target audience was
2025-12-11

Journal number 4 ∘ Natia Kakhniashvili ∘ Khatuna Barbakadze ∘ Nato Kakashvili ∘

Conceptual Issues of Tax Policy and Economic Growth in Georgia: The Perspective of Poverty Reduction

Annotation. Tax policy is one of the most powerful instruments of state economic regulation. It influences investment, consumption, income distribution, and ultimately, the pace and quality of economic growth. In Georgia, since the early 2000s, tax reforms have aimed to simplify the system and stimulate investment. However, despite solid economic performance, poverty and income inequality remain significant challenges. This paper examines the conceptual link between tax policy, economic growth, and poverty reduction in Georgia, emphasizing the need for an inclusive fiscal framework that supports both growth and social equity. Keywords: Economic growth,Tax policy, Poverty reduction, Income Inequality,Inclusive Fiscal Policy Introduction Tax policy plays a dual role in modern economies: it serves as a fiscal tool for financing public services and as a regulatory mechanism that shapes investment and consumption behavior. In Georgia, tax reforms have significantly transformed the
2025-12-11

Journal number 4 ∘ Khatuna Barbakadze ∘ Natia Kakhniashvili ∘ Nato Kakashvili ∘

Capital Budgeting: Theoretical Foundation and Optimization Perspectives

Expanded Summary The article discusses the theoretical foundations of budgeting, its main challenges, and the prospects for optimization. In a company, managerial decision-making is impossible without the implementation of an effective system for budgeting financial and economic activities. Budgeting is the process of planning a company\'s financial resources with the aim of optimally allocating revenues and expenses. The purpose of budgeting is to enable planning and informed managerial decision-making based on an analysis of the company’s financial condition. Through planning, financial risks can be identified, allowing for their reduction. By means of the budgeting process, companies plan and determine their future financial position. Regular budgeting makes it possible to detect existing negative trends, which allows timely corrective actions to be taken. This is especially important in an unstable economic environment, where financial risks and their consequences tend to
2025-12-11

Journal number 4 ∘ Otar Japaridze ∘

Georgian mountain tourism business

Annotation. Based on the relevancy of general development of the tourism business, the presented work sets a goal of identifying the needs and problems of separate directions of mountain tourism – one of the most demanded sector of tourism, as well as determination of specific problem situations we face at tourist places, which are best of all seen exactly from within. The work discusses the trends of development of the mountain tourism, the best examples of different countries and the ongoing processes in Georgia in relation to mountain tourism. The role of tourism in the economic development of mountainous regions and the return migration is also discussed in this work. However, at the same time, it shows the threats it faced in relation to local culture, social identity, traditional economy and ecology. The work also shows the importance of cluster development of the sector as an innovative approach that helps the development of different directions in the regions and
2025-12-11

Journal number 4 ∘ David Roinishvili ∘

Irrational Decision-Making in Economics and Business: An Experimental Study of Emotional Well-Being

Expanded Summary This paper is part of a broader research effort aimed at challenging one of the central assumptions in classical economic theory—namely, that individuals are rational decision-makers who act consistently to maximize their utility. Unlike traditional models, such as utility theory, which treat individuals as fully rational agents capable of evaluating all options and making optimal choices, this study advances the hypothesis that human behavior frequently deviates from rationality. Specifically, it investigates how emotional well-being and satisfaction are shaped not solely by what individuals possess, but by how they perceive their own outcomes relative to those of others. To test this hypothesis, the paper presents findings from two original experiments that utilize primary data collected through an experimental methodology. The overarching aim of these experiments is to explore how individuals\' emotional well-being is influenced by comparative evaluation
2025-12-11

Journal number 4 ∘ Levan Shakarashvili ∘

Model-Based Monetary Policy Analysis and Forecasting (The Case of the Czech Republic)

Expanded Summary This paper provides a comprehensive analysis of modern monetary policy frameworks, emphasizing the role of model-based approaches in achieving macroeconomic stability, price control, and financial sustainability. It explores how central banks use theoretical, empirical, and expectation-driven models to guide decisions in an increasingly interconnected global economy. The first section defines the Monetary Policy Framework (MPF) as the institutional and operational environment guiding central banks. It includes the legal mandate, strategic objectives (price stability, full employment), operational independence, policy instruments, and transparent communication strategies. A well-structured MPF enhances credibility and predictability, which are essential for effective policymaking. The paper then discusses the “impossible trinity” or monetary policy trilemma (Aizenman, Chinn, & Ito, 2010), which states that a country cannot simultaneously maintain a
2025-12-11

Journal number 4 ∘ Ilia Janiashvili ∘

The Middle Corridor and the Management of Georgias Potential

Expanded Summary The article provides a comprehensive analysis of the Middle Corridor (also known as the Trans-Caspian International Transport Route) and its growing strategic importance in the wake of major global shifts, particularly the Russia-Ukraine war. It positions Georgia as a pivotal nation within this new geopolitical and economic landscape. The paper begins by contextualizing the need for new trade routes. Global supply chains, already strained by the COVID-19 pandemic, were further disrupted by the 2022 Russia-Ukraine conflict. Western sanctions against Russia rendered the traditional "Northern Route" connecting China and Europe less viable and more risky. This created a powerful impetus to develop alternative pathways, thrusting the Middle Corridor—a key component of China\\'s Belt and Road Initiative (BRI)—into the spotlight. The corridor is a multimodal transport network designed to connect Asia to Europe through Central Asia, the Caspian Sea, the
2025-12-11

Journal number 4 ∘ Ayan Mirzayeva ∘ Gunay Rahimli ∘

ASSESSMENT OF THE IMPACT OF TOURISM ON KEY ECONOMIC INDICATORS OF VARIOUS SECTORS OF THE NATIONAL ECONOMY BASED

ON THE INPUT-OUTPUT MODEL Annotation. This paper evaluates the impact of investments in the tourism sector on various indicators of different sectors of the national economy. For this purpose, the 2021 input-output table was first grouped into 19 sectors according to the classification of economic activities. Based on this table, the input-output table, labor balance model, capital balance model, and equilibrium price model were applied to assess the effects of the tourism sector on the economy. The study identifies how investments allocated to the tourism sector influence total output, employment, and fixed capital both within the sector itself and in other sectors. Additionally, the impact of changes in the tourism sector’s value-added ratio on sectoral prices was determined. The findings of the research can be used in decision-making to ensure efficient use of investments and dynamic economic development. Keywords:Input-Output Analysis; Tourism Investment Impact;
2025-12-11

Journal number 4 ∘ Zaza Pantsulaia ∘

State Material Reserves from the age of Antiquity to the Present (Historical Overview)

Expanded Summary State material reserve stocks are created by the governing bodies/entities of a country, and their purpose is to supply the population with primary and urgent necessities during wartime and/or a state of emergency, or other exceptional situations (natural disasters and other catastrophes), as well as to ensure the functioning of critically important infrastructure such as railways, highways, seaports, communications, gas, oil and petroleum products, energy and water supply, healthcare institutions, and other vital critical infrastructure. Accordingly, the formation and use of the state reserve is mainly carried out for the following purposes: a) To meet Georgia’s mobilization needs b) To mitigate and eliminate the consequences of natural disasters, catastrophes, and other emergency situations c) To ensure the sustainable functioning of the key elements of the country’s economy d) To provide urgent humanitarian assistance. State material reserves
2025-12-11

Journal number 4 ∘ Lela Kintsurashvili ∘

THE INSTITUTIONAL FRAMEWORK OF THE GEORGIAN LABOR MARKET: CHARACTERISTICS AND OBSTACLES

Annotation.This study provides a critical institutional analysis of the labor market infrastructure in Georgia, focusing on the countrys transition from a centralized economic system and its pursuit of alignment with European standards - ILO and EU Association Agreement. Despite significant legislative reforms over the last decade, including the establishment of the State Service for Employment Support Agency and the reinstatement of the Labor Inspection, the core institutional mechanisms suffer from critical operational deficiencies.The analysis identifies five interconnected structural weaknesses: the ineffectiveness of Active Labor Market Policies, which are hampered by an emphasis on quantitative output metrics over qualitative, long-term employment sustainability indicators; a regulatory deterrence deficit in labor supervision, where weak sanctions fail to incentivize employer compliance; the erosion of meritocracy within the public sector due to subjective
2025-12-11

Journal number 4 ∘ Nino Aptsiauri ∘

Marketing Communication as the Basis for Creating an Effective Strategy

Expanded Summary In the terms of a market economy, alongside the growing role of marketing, the role of marketing communications has also increased. Companies in all sectors constantly try to deliver information about their activities to consumers, since effective communication with customers is a key factor in any company’s success. As a rule, companies develop a marketing communication plan and content that aligns with the context of their operations. Marketing communication is a means of transmitting information from a company to consumers in a way that influences the decisions of customers and the target audience. Typically, effective marketing communication has a positive impact on consumers, just as incorrect or poorly executed marketing communication can become a precondition for creating a negative image. In a competitive market environment, attracting customers is a significant challenge. This is why developing an effective marketing strategy for consumers is
2025-12-11

Journal number 4 ∘ Omari Bakuradze ∘

Foundations of Artificial Intelligence Integration in Military Management

Expanded Summary This paper conducts an exhaustive review of the fundamental issues involved in AI incorporation into combat management system (CMS) and its evolution from past to present technological paradigms. The study treats AI as a transformative agent that causes disruption to established, military structures and ways of doing things. The history of military AI is explored through the survey of five separate evolutionary phases: the Electronics Era (1940-60), that saw early computational systems and new technologies in radar; the Information Technology Period (1970-80) with expert systems and network construction; Automation Epoch (1990-2000) displayed platforms unmanned and aircraft from drones downed unmanned; a more recent age The AI Era (2010-20) dominated by machine learning algorithms and big data analytics, as well as Future Perspectives which cover quantum computing and hypersonics. A critical assessment of the chronology shows that the development of
2025-12-11

Journal number 4 ∘ Gurami Iosebashvili ∘

The Economic Effects of Grape Subsidies in kakheti region

Expanded Summary Grape subsidy policy in Georgia, especially in the Kṛṭiṭi region, It represents one of the state\\'s largest-scale agricultural interventions, aimed at This is aimed at stabilization of the wine and liquor sector. This program is targeted at both large and small businesses to reduce prices. Negative impact of rain and poor realization of crop to be ensured. From an economic point of view, production, as well as expanding export capabilities. Despite positive results, subsidy has risks, because it creates Dependence on the state, which affects the development of the sector. Therefore, economic impacts require a full-scale assessment as short-term Benefits, long-term sustainability analysis. Finally, the wheat subsidy program represents a mechanism that has significantly Helped by people living in the area. However, its effectiveness depends on additional political steps: quality control, The collaboration of
2025-12-11

Journal number 4 ∘ Irine Ordenidze ∘

Innovative Startup Ecosystems and Artificial Intelligence: Georgia and the Baltic States

Expanded Summary Artificial intelligence (AI — algorithm-based computer systems capable of self-learning and autonomous decision-making) has emerged over the past decade as a transformational force in the global economy. OECD (2024) notes that the integration of AI has fundamentally altered the logic of innovative business operations: decisions are no longer based on intuition or personal experience, but are derived from data (quantitative and qualitative digital information), algorithms (computer-generated instruction sets), and predictive modeling (statistical methods used to estimate future outcomes). Literature Review. To establish the theoretical foundation of the study, recent scholarly research, institutional reports, and publications by international organizations have been analyzed in order to identify current trends related to artificial intelligence (AI — self-learning algorithmic systems), startup ecosystems (interaction among investors, universities, the
2025-12-11

Journal number 4 ∘ Avtandil Sulaberidze ∘ David Chelidze ∘

Demographic Trends in Georgia and Some Avenues for Overcoming the Problems

DOI:10.52340/ekonomisti.2025.04.08 Expanded summary The aim of the paper is to study and analyze the ongoing demographic processes in Georgia and to find ways of overcoming the existing problems. To achieve this goal, the first part of the paper discusses the results of the general population censuses carried out at the end of the Soviet Period in 1989, and subsequently in 2002 and 2014 after the restoration of the country’s independence, as well as preliminary data for the 2024 census. Taking into account the undesirable trend of population decline in the country as a whole (including the titular nationality—ethnic Georgians), as well as of the working-age population and of women of reproductive age, as highlighted through research-systematization of the aforementioned data, as well as of all relevant data, the paper outlines an opinion on the feasibility of creating and using a mechanism for the financial stimulation of the ongoing demographic processes
2025-12-11