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

DOI: 10.36172/EKONOMISTI

E ISSN 2346-8432
Print ISSN 1987-6890

Journal number 4 ∘ Ramaz Abesadze ∘

Stages of transformation of economic and general directions of its development in Georgia

Summary despite 25 years from the start of reforms, we could not transfer in to the perfect market economy. It should be specially mentioned that nowadays market infrastructure is undeveloped (commodity, stock and labor markets, insurance service, investing institutions, marketing, engineering, consulting and informative services and other); economic ( industrial and agricultural production is undeveloped, level of development of small business is low, import exceeds export several times etc.) as well as social structures are non-progressive ( strong middle class has not been created yet, the level of unemployment and poverty is quite high etc). In the future elimination of the deficiencies existing in the economy of Georgia and the choice of the right way cannot be done as the result of simple inertia. The main attention should be paid to economic development that is qualitative perfection of the economy, in order to eliminate deformation of the economy. This can be implemented with

Journal number 4 ∘ Agnieszka Rzepka ∘

FDI AND INTERNATIONAL TRADE IN GLOBALISATION ASPECTS IN ECONOMY. THE CASE OF POLAND

Summary Economic globalization changes the external environment in which national entities operate. On the one hand, it opens new opportunities, but on the other, it imposes a serious threat. That is why both governments and businesses must take appropriate measures and strategies to meet new challenges. In the article the economic globalisation aspects of international trade and foreign direct investments (FDI) are studied. The case of the Polish economy is considered in this context. Keywords: Globalization, Poland, economy, Trade, International Introduction In today's global economy, there are developing various types of economic and political relationships. The most important include: the exchange of goods and services, trade in the foreign exchange markets, the flow of capital and labour, international cooperation in production, and international political cooperation. Fast development of economic relations between different countries, and the creation and development of inte

Journal number 4 ∘ Giorgi Tchuradze ∘ Giuli Keshelashvili ∘ Eka Chokheli ∘ Manana kharkheli ∘ Nugzar Paichadze ∘ Shorena Tielidze ∘

Issues of HR Management Improvement in Private Sector of Georgian

Summary Work offers overview the issues of HR management in Georgian companies. In particular, it provides analysis of the issues of personnel development planning, identification of the recruitment rules and techniques, personnel assessment, selection and employment, employee adaptation, training, qualification improvement and development, personnel motivation, communication and decision-making process, organizational strategy and organizational structure suitability, assessment of the personnel activities and labor potential, personnel carrier management and HR management system software. The directions for improvements of these issues are identified. Keywords: human resources, private sector, qualification, personnel motivation, organizational strategy, organizational structure. 1.Introduction Successful functioning of the organizations is the basis for their economic growth, i.e. degree of economic growth depends on the quality of management quality at various levels of manage

Journal number 4 ∘ Irine Mamaladze ∘

COMPANIE´S REORGANIZATION AND THE PROBLEM OF BALANCING THE INTERESTSExpanded Summary

Expanded Summary Company reorganization is an usual run of things in modern business. Companies often alliance with each other which are then transformed into a legal entity. Sometimes more powerful rivals join and then devour weaker companies. Growing companies single out (spin-off) certain businesses as separate legal entities to make them more flexible to continue the development. Very large firms are forced to disintegrate as required by the antitrust law or different interests of major shareholders etc. Modern financial crisis are pushing a number of companies to single out specific assets or businesses in order to pledge them or sell and repay loan portfolio. In case of absorption and join financial problems are comparatively small-all the company’s assets and liabilities are transferred to a successor which is responsible for all of them. As to disintegration or single out (spit off), this time becomes a problem to divide assets and lia

Journal number 4 ∘ Vakhtang Charaia ∘

Foreign Direct Investments Attraction and Management in Georgia

Expanded Summary The article focuses on the role of FDI in Georgia’s economic development. To attract as much FDI as possible, a proper investment climate should be in place - institutional, political and regulatory environment. Well developed investment climate is the chance and motivation for both, local economy and foreign companies, to generate maximum income, create new work places and improve the quality of life in the given country. FDI trend is one of the best indicators of country’s economic sustainability and its attractiveness. Especially for small and developing countries, the amount of FDI matters, therefore most of such countries are trying to compete with each other through improving their investment climate according to different world famous indexes, such as: Global Competitiveness Index, Doing Business, Corruption Perception Index, Economic Freedom Index and etc. As a result of impressive reforms since 2003, Georgian economy has benefited with large

Journal number 4 ∘ Nana Sreseli ∘ Merab Jikia ∘ Rusa Sreseli ∘

General aspects of cash flow statement analyze

Resume The Companies are facing financial difficulties when portion of cash resources is decreased in the pool of current assets, while current liabilities are increased. The lack of minimal cash reserves runs the risk of covering company’s expenses. The surplus of cash resources indicates missed possibility of benefit from investing of this cash resources. The above mentioned problem can be solved by analyzing of financial resources and evaluate sufficiency of cash resources; Specifically calculation of minimum balance of cash resources evaluation of synchronicity of inflow and outflow cash recourses along with company’s ability to generate cash. The article contains important discussion about evaluate of net cash resource’s general structure and separately for each type of company’s activity; along with importance of cash flow statement analyze in respect of identifying company’s solvency and liquidity. The importance of analyzing cash re

Journal number 4 ∘ Ketevan Kveladze ∘ Nunu Kistauri ∘ Medea Melashvili ∘

Modern Aspects of service sector and its development perspectives in Georgia

Resume Rapid growth of service sector is one of the main tendencies at modern period of development. Service – is a process, the integral part of which is always the people. According to international statistical data more than 40% of foreign investments in the world is spent on the development of the service sphere that indicates not only the importance of this sector, but the vast perspectives of the further development. Such a cardinal change in the role of the service sector has given birth to talk about the foundation of postindustrial “service” society and mention economy as a “service economy”. At present according to the World Bank data the service sphere revenue is 68% in the world GDP structure while more than a half of employees in developed economies are concentrated in service sphere where the place of material-intensive sectors is quickly occupied by science-intensive and labor-intensive sectors. Revising the last years dynamics of

Journal number 4 ∘ Irakli Doghonadze ∘

This article discusses on the example of Georgia the influence of monetary impulses towards the real GDPand real sector of economy

Expanded Summary This article discusses on the example of Georgia the influence of monetary impulses towards the real GDPand real sector of economy. For this purpose, under the vector autoregressive model has been carried out the reaction functions’ study on the impulse. The survey shows that the money supply stock's impact on the real estate price index is important. The above-mentioned fully responds to the the idea of economic theory of money supply stimulation on the economy in the short term, and the real estate market is no exception also. Introduction: It should be noted that in 1996-2015 in a Georgia the circulation of the national currency's volume was approx. 13-times more increased, while the average annual growth rate reached approx. 16%. Money supply rate was especially high in the years 2004- 2007.Against this background the real GDP 2.7 times increased, according to official statistics, and the consumer price index has increased 2.8 times, average ann

Journal number 4 ∘ Tornike Khoshtaria ∘

THE IMPACT OF BUSINESS STRATEGY IMPLEMENTATION ON THE COMPANIES’ OVERALL PERFORMANCE IN GEORGIA

Expanded Summary Competitive approaches are normally seen as a set of actions of available resources that are usually utilized in the strategic process development. Therefore, managers pay important attention to them to increase organizational performance.The relationship between competitive approaches (low-cost leadership, differentiation and focus) and the organizational performance have been explored by many strategy researches, yet, there is no clear evidence that companies following one of the generic strategies are going to have superior performance. Although, most research in this area has been conducted in the manufacturing sector, the review of the literature on strategy processes and organizational performance pinpointed that there is no single empirical evidence involving Georgian based manufacturing organizations. Moreover, the degree of strategy implementation has not been measured against the performance measures of the companies. Strategy Implementation and Perfor

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

DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 4 ∘ Ramaz Abesadze ∘ Stages of transformation of economic and general directions of its development in Georgia Summary despite 25 years from the start of reforms, we could not transfer in to the perfect market economy. It should be specially mentioned that nowadays market infrastructure is undeveloped (commodity, stock and labor markets, insurance service, investing institutions, marketing, engineering, consulting and informative services and other); economic ( industrial and agricultural production is undeveloped, level of development of small business is low, import exceeds export several times etc.) as well as social structures are non-progressive ( strong middle class has not been created yet, the level of unemployment and poverty is quite high etc). In the future elimination of the deficiencies existing in the economy of Georgia and the choice of the right way cannot be done as the result of simple inertia. The main attention should be paid to economic development that is qualitative perfection of the economy, in order to eliminate deformation of the economy. This can be implemented with Journal number 4 ∘ Agnieszka Rzepka ∘ FDI AND INTERNATIONAL TRADE IN GLOBALISATION ASPECTS IN ECONOMY. THE CASE OF POLAND Summary Economic globalization changes the external environment in which national entities operate. On the one hand, it opens new opportunities, but on the other, it imposes a serious threat. That is why both governments and businesses must take appropriate measures and strategies to meet new challenges. In the article the economic globalisation aspects of international trade and foreign direct investments (FDI) are studied. The case of the Polish economy is considered in this context. Keywords: Globalization, Poland, economy, Trade, International Introduction In today's global economy, there are developing various types of economic and political relationships. The most important include: the exchange of goods and services, trade in the foreign exchange markets, the flow of capital and labour, international cooperation in production, and international political cooperation. Fast development of economic relations between different countries, and the creation and development of inte Journal number 4 ∘ Giorgi Tchuradze ∘ Giuli Keshelashvili ∘ Eka Chokheli ∘ Manana kharkheli ∘ Nugzar Paichadze ∘ Shorena Tielidze ∘ Issues of HR Management Improvement in Private Sector of Georgian Summary Work offers overview the issues of HR management in Georgian companies. In particular, it provides analysis of the issues of personnel development planning, identification of the recruitment rules and techniques, personnel assessment, selection and employment, employee adaptation, training, qualification improvement and development, personnel motivation, communication and decision-making process, organizational strategy and organizational structure suitability, assessment of the personnel activities and labor potential, personnel carrier management and HR management system software. The directions for improvements of these issues are identified. Keywords: human resources, private sector, qualification, personnel motivation, organizational strategy, organizational structure. 1.Introduction Successful functioning of the organizations is the basis for their economic growth, i.e. degree of economic growth depends on the quality of management quality at various levels of manage Journal number 4 ∘ Irine Mamaladze ∘ COMPANIE´S REORGANIZATION AND THE PROBLEM OF BALANCING THE INTERESTSExpanded Summary Expanded Summary Company reorganization is an usual run of things in modern business. Companies often alliance with each other which are then transformed into a legal entity. Sometimes more powerful rivals join and then devour weaker companies. Growing companies single out (spin-off) certain businesses as separate legal entities to make them more flexible to continue the development. Very large firms are forced to disintegrate as required by the antitrust law or different interests of major shareholders etc. Modern financial crisis are pushing a number of companies to single out specific assets or businesses in order to pledge them or sell and repay loan portfolio. In case of absorption and join financial problems are comparatively small-all the company’s assets and liabilities are transferred to a successor which is responsible for all of them. As to disintegration or single out (spit off), this time becomes a problem to divide assets and lia Journal number 4 ∘ Vakhtang Charaia ∘ Foreign Direct Investments Attraction and Management in Georgia Expanded Summary The article focuses on the role of FDI in Georgia’s economic development. To attract as much FDI as possible, a proper investment climate should be in place - institutional, political and regulatory environment. Well developed investment climate is the chance and motivation for both, local economy and foreign companies, to generate maximum income, create new work places and improve the quality of life in the given country. FDI trend is one of the best indicators of country’s economic sustainability and its attractiveness. Especially for small and developing countries, the amount of FDI matters, therefore most of such countries are trying to compete with each other through improving their investment climate according to different world famous indexes, such as: Global Competitiveness Index, Doing Business, Corruption Perception Index, Economic Freedom Index and etc. As a result of impressive reforms since 2003, Georgian economy has benefited with large Journal number 4 ∘ Nana Sreseli ∘ Merab Jikia ∘ Rusa Sreseli ∘ General aspects of cash flow statement analyze Resume The Companies are facing financial difficulties when portion of cash resources is decreased in the pool of current assets, while current liabilities are increased. The lack of minimal cash reserves runs the risk of covering company’s expenses. The surplus of cash resources indicates missed possibility of benefit from investing of this cash resources. The above mentioned problem can be solved by analyzing of financial resources and evaluate sufficiency of cash resources; Specifically calculation of minimum balance of cash resources evaluation of synchronicity of inflow and outflow cash recourses along with company’s ability to generate cash. The article contains important discussion about evaluate of net cash resource’s general structure and separately for each type of company’s activity; along with importance of cash flow statement analyze in respect of identifying company’s solvency and liquidity. The importance of analyzing cash re Journal number 4 ∘ Ketevan Kveladze ∘ Nunu Kistauri ∘ Medea Melashvili ∘ Modern Aspects of service sector and its development perspectives in Georgia Resume Rapid growth of service sector is one of the main tendencies at modern period of development. Service – is a process, the integral part of which is always the people. According to international statistical data more than 40% of foreign investments in the world is spent on the development of the service sphere that indicates not only the importance of this sector, but the vast perspectives of the further development. Such a cardinal change in the role of the service sector has given birth to talk about the foundation of postindustrial “service” society and mention economy as a “service economy”. At present according to the World Bank data the service sphere revenue is 68% in the world GDP structure while more than a half of employees in developed economies are concentrated in service sphere where the place of material-intensive sectors is quickly occupied by science-intensive and labor-intensive sectors. Revising the last years dynamics of Journal number 4 ∘ Irakli Doghonadze ∘ This article discusses on the example of Georgia the influence of monetary impulses towards the real GDPand real sector of economy Expanded Summary This article discusses on the example of Georgia the influence of monetary impulses towards the real GDPand real sector of economy. For this purpose, under the vector autoregressive model has been carried out the reaction functions’ study on the impulse. The survey shows that the money supply stock's impact on the real estate price index is important. The above-mentioned fully responds to the the idea of economic theory of money supply stimulation on the economy in the short term, and the real estate market is no exception also. Introduction: It should be noted that in 1996-2015 in a Georgia the circulation of the national currency's volume was approx. 13-times more increased, while the average annual growth rate reached approx. 16%. Money supply rate was especially high in the years 2004- 2007.Against this background the real GDP 2.7 times increased, according to official statistics, and the consumer price index has increased 2.8 times, average ann Journal number 4 ∘ Tornike Khoshtaria ∘ THE IMPACT OF BUSINESS STRATEGY IMPLEMENTATION ON THE COMPANIES’ OVERALL PERFORMANCE IN GEORGIA Expanded Summary Competitive approaches are normally seen as a set of actions of available resources that are usually utilized in the strategic process development. Therefore, managers pay important attention to them to increase organizational performance.The relationship between competitive approaches (low-cost leadership, differentiation and focus) and the organizational performance have been explored by many strategy researches, yet, there is no clear evidence that companies following one of the generic strategies are going to have superior performance. Although, most research in this area has been conducted in the manufacturing sector, the review of the literature on strategy processes and organizational performance pinpointed that there is no single empirical evidence involving Georgian based manufacturing organizations. Moreover, the degree of strategy implementation has not been measured against the performance measures of the companies. Strategy Implementation and Perfor