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 ∘ Vladimer Papava ∘

NEW CHALLENGES OF ECONOMIC SCIENCE UNDER THE COVID-19 PANDEMIC

DOI: 10.36172/EKONOMISTI.2020.XVI.04.Papava Expended Summary The paper examines the most pressing problems facing economics in the context of the economic crisis caused by the COVID-19 pandemic. Due to the atypical nature of this crisis, the knowledge accumulated by economic science about the economy under the conditions of a typical crisis or an atypical economic crisis is in many cases practically unusable, primarily due to the fact that in the context of the COVID-19 pandemic, the economy is a hostage of medicine. Many problems known by economic science both during the course of the noted crisis and in the post-crisis period require new approaches to resolve them. Key words: economic science, COVID-19 pandemic, coronomic crisis, globalization, de-globalization, zombie-ing of the economy. The COVID-19 pandemic has triggered a global economic crisis which is a topical subject for the study for economics. Emphasizing the importance of the economic crisis caused by

Journal number 4 ∘ Vakhtang Burduli ∘

CLASSIFICATION OF TYPES OF INNOVATIONS AND SECTORAL PROBLEMS OF THEIR DISSEMINATION

DOI: 10.36172/EKONOMISTI.2020.XVI.04.Burduli Expanded Summary In order to investigate the sectoral problems of the diffusion of innovations, it is first of all necessary to study modern views on the classification of types of innovations and the systematization of methods for their development and dissemination, which I have done in the first section of the work. In the second section of the work, the sectoral (sectoral and subsector) problems of the diffusion of innovations are systematically examined, and they are systematized in the context of innovations that are disseminated only within certain specific sectors (sectors, and in industry and subsectors) of the economy, and innovations that are disseminated in all sectors under the auspices of green economy (about 40% of all innovations spread in the world), information and communication technologies (or, in a broader sense, digital economy) - about 40% of all innovations spread in the world, production technologies and

Journal number 4 ∘ Zurab Garakanidze ∘

About the need to calculate the Agflation rate during a pandemic

DOI: 10.36172/EKONOMISTI.2020.XVI.04.Garakanidze SUMMARY Food crises are a natural process for the entire biosphere, as well as for the humanity living in it. Periods of famine and subsequent crises (political and social) throughout history are quite common. The development of global governance institutions and the understanding of the complexity and importance of food security problems for the world population have contributed to the development of the concept of "food security" and its widespread use. The start of these processes, in turn, was stimulated by a series of grain crises that took place in the 1970s. These processes have exposed the gap between the level of food supply in developed countries and the so-called. Among the "Third World" countries. To overcome these difficulties, the Food and Agriculture Organization of the United Nations (FAO) developed the Global Concept of Food Security in 1974. It was presented at the FAO Food Conference in Rome. According to

Journal number 4 ∘ George Berulava ∘ Teimuraz Gogokhia ∘

THE IMPACT OF BUSINESS ENVIRONMENT ON THE STRUCTURAL LINK BETWEEN FIRMS INNOVATION, PRODUCTIVITY AND EXPORT PERFORMANCE IN TRANSITION ECONOMIES[1]

DOI: 10.36172/EKONOMISTI.2020.XVI.04.Berulava.Gogokhia Expanded Summary Innovation, productivity growth and exporting are important economic factors that many consider crucial to the economic development and enhancing living standards. The worldwide experience provides plenty evidence that innovation and export promotions are important components of the growth strategy in emerging markets. Discussions of factors that determine success of innovation and export performance have been ongoing for many years. Both the factors that are under the firm control and external factors have been studied extensively in the academic literature. However, the role of business environment as one of the external factors in promoting innovation, productivity and export performance of companies as well as the structural interrelationships between these factors remained relatively unstudied. This paper focuses on the role of the business environment in influencing innovation, productivity, and

Journal number 4 ∘ Grigoriy Gurbanov ∘

ASSESSMENT OF THE INVESTMENT ATTRACTIVENESS OF GEORGIAN ICT COMPANIES

DOI: 10.36172/EKONOMISTI.2020.XVI.04.Gurbanov Summary. Thanks to modern trends in informatization and globalization, the economies of many developed and developing countries are based on the development of the information and communication technology (ICT) industry. Innovative in nature, ICT companies create the infrastructure for the efficient operation in all sectors of the economy and are a source of technological and business innovation and progress. This research aims is to identify the specifics of the ICT sector, assess the risks for investors and analyze the investment attractiveness of 50 Georgian ICT companies based on metrics of their financial performance (for the period 2017-2018). The analysis is based on the use of the main financial ratios of companies' performance, taking into account the specifics of the IT sector companies. Keywords: Information and communication technologies, ICT market, investments, financial indicators. Actuality. The high-tech mark

Journal number 4 ∘ Ani Kalandia ∘

The role of investment in global markets for increasing the competitiveness of the country

DOI: 10.36172/EKONOMISTI.2020.XVI.04.Kalandia Abstract Despite an existing global challenges, Georgia is trying to become a regional investment hub in the Caucasus. Government is developing strategies that will focus on increasing the flow of foreign direct investment. Article reviews global competitiveness index, published by The World Economic Forum (WEF). The report serves two main purposes: to help governments easily identify the factors hindering economic growth, and to help the business sector make decisions about future investment. Article analyzes the challenges Georgia faces nowadays according to report and proposes recommendations for improving the country’s weak points. Keywords: Foreign Direct Investments, Global Competitiveness, Economic Growth, Innovation Capacity. In the scientific literature, competitiveness is considered to be one of the determining factors in the inflow of foreign direct investment, as it is associated with hig

Journal number 4 ∘ Giorgi Sanadze ∘

“High-Technological Man” – The Key human factor of Innovation Economics

DOI: 10.36172/EKONOMISTI.2020.XVI.04.Sanadze Summary The following article clarifies some of new circumstances in line with innovative economic development. Nowadays, economic growth is closely depended on innovative and high-tech based assets. The economy is reality, raised through entrails of society, while at the same time society is a community based on a certain structure of people. In this turn, we can easily assume humans as a supreme actor within the implementation of the economy itself. The development of the economy, namely in innovative angles is impossible without human factors (theoretical constructs). In the XXI century, the demand on high tech-based production and services are increased gradually. Noteworthy, that innovation issues were relatively less popular in the economic field before the 1990s. Innovative economics is a theory, which focuses on the active use of high-tech tools and knowledge, in order to elaborate relevant products or services, u

Journal number 4 ∘ Beka Zautashvili ∘

COVID-19 Adverse Effects in the Agricultural Sector and the Importance of Modern Platforms for Problem Solving

DOI: 10.36172/EKONOMISTI.2020.XVI.04.Zautashvili Summary According to statistics, in many regions of the world there is an increase in poverty and aggravation of existing problems, including hunger. The current events have an unfavorable impact on various sectors, including the agriculture sector. In order to eliminate the problems and make the agro sector functioning properly, Society need to take development-oriented steps, such as digital technologies and innovation. Keywords:Agriculture; COVID-19; Digital Platforms; Technology; Innovation

Journal number 4 ∘ Mesaad Ibrahim Al-Sulaim ∘

Theories and concepts on the study of trade and economic relations between countries

DOI: 10.36172/EKONOMISTI.2020.XVI.04.MesaadIbrahimAl-Sulaim Abstract Initially, in the article the essence of the international economy and the international division of labor has been explained, the factors necessitating their formation have been analyzed, the main specific features of international trade, which is a key component of the international economy, and the factors influencing them have been identified, each of the classical (mercantilism, absolute advantages, comparative advantages and Heckscher-Ohlin theories) and modern (product life cycle, country similarity, economic measurement theories) international trade theories have been studied and their main features, contributions and shortcomings to international trade have been analyzed. In the end, concrete results on international trade theories have been obtained on the basis of research. Keywords: international economy, international trade, theories, international division of labour. I. Introduc

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 ∘ Vladimer Papava ∘ NEW CHALLENGES OF ECONOMIC SCIENCE UNDER THE COVID-19 PANDEMIC DOI: 10.36172/EKONOMISTI.2020.XVI.04.Papava Expended Summary The paper examines the most pressing problems facing economics in the context of the economic crisis caused by the COVID-19 pandemic. Due to the atypical nature of this crisis, the knowledge accumulated by economic science about the economy under the conditions of a typical crisis or an atypical economic crisis is in many cases practically unusable, primarily due to the fact that in the context of the COVID-19 pandemic, the economy is a hostage of medicine. Many problems known by economic science both during the course of the noted crisis and in the post-crisis period require new approaches to resolve them. Key words: economic science, COVID-19 pandemic, coronomic crisis, globalization, de-globalization, zombie-ing of the economy. The COVID-19 pandemic has triggered a global economic crisis which is a topical subject for the study for economics. Emphasizing the importance of the economic crisis caused by Journal number 4 ∘ Vakhtang Burduli ∘ CLASSIFICATION OF TYPES OF INNOVATIONS AND SECTORAL PROBLEMS OF THEIR DISSEMINATION DOI: 10.36172/EKONOMISTI.2020.XVI.04.Burduli Expanded Summary In order to investigate the sectoral problems of the diffusion of innovations, it is first of all necessary to study modern views on the classification of types of innovations and the systematization of methods for their development and dissemination, which I have done in the first section of the work. In the second section of the work, the sectoral (sectoral and subsector) problems of the diffusion of innovations are systematically examined, and they are systematized in the context of innovations that are disseminated only within certain specific sectors (sectors, and in industry and subsectors) of the economy, and innovations that are disseminated in all sectors under the auspices of green economy (about 40% of all innovations spread in the world), information and communication technologies (or, in a broader sense, digital economy) - about 40% of all innovations spread in the world, production technologies and Journal number 4 ∘ Zurab Garakanidze ∘ About the need to calculate the Agflation rate during a pandemic DOI: 10.36172/EKONOMISTI.2020.XVI.04.Garakanidze SUMMARY Food crises are a natural process for the entire biosphere, as well as for the humanity living in it. Periods of famine and subsequent crises (political and social) throughout history are quite common. The development of global governance institutions and the understanding of the complexity and importance of food security problems for the world population have contributed to the development of the concept of "food security" and its widespread use. The start of these processes, in turn, was stimulated by a series of grain crises that took place in the 1970s. These processes have exposed the gap between the level of food supply in developed countries and the so-called. Among the "Third World" countries. To overcome these difficulties, the Food and Agriculture Organization of the United Nations (FAO) developed the Global Concept of Food Security in 1974. It was presented at the FAO Food Conference in Rome. According to Journal number 4 ∘ George Berulava ∘ Teimuraz Gogokhia ∘ THE IMPACT OF BUSINESS ENVIRONMENT ON THE STRUCTURAL LINK BETWEEN FIRMS INNOVATION, PRODUCTIVITY AND EXPORT PERFORMANCE IN TRANSITION ECONOMIES[1] DOI: 10.36172/EKONOMISTI.2020.XVI.04.Berulava.Gogokhia Expanded Summary Innovation, productivity growth and exporting are important economic factors that many consider crucial to the economic development and enhancing living standards. The worldwide experience provides plenty evidence that innovation and export promotions are important components of the growth strategy in emerging markets. Discussions of factors that determine success of innovation and export performance have been ongoing for many years. Both the factors that are under the firm control and external factors have been studied extensively in the academic literature. However, the role of business environment as one of the external factors in promoting innovation, productivity and export performance of companies as well as the structural interrelationships between these factors remained relatively unstudied. This paper focuses on the role of the business environment in influencing innovation, productivity, and Journal number 4 ∘ Grigoriy Gurbanov ∘ ASSESSMENT OF THE INVESTMENT ATTRACTIVENESS OF GEORGIAN ICT COMPANIES DOI: 10.36172/EKONOMISTI.2020.XVI.04.Gurbanov Summary. Thanks to modern trends in informatization and globalization, the economies of many developed and developing countries are based on the development of the information and communication technology (ICT) industry. Innovative in nature, ICT companies create the infrastructure for the efficient operation in all sectors of the economy and are a source of technological and business innovation and progress. This research aims is to identify the specifics of the ICT sector, assess the risks for investors and analyze the investment attractiveness of 50 Georgian ICT companies based on metrics of their financial performance (for the period 2017-2018). The analysis is based on the use of the main financial ratios of companies' performance, taking into account the specifics of the IT sector companies. Keywords: Information and communication technologies, ICT market, investments, financial indicators. Actuality. The high-tech mark Journal number 4 ∘ Ani Kalandia ∘ The role of investment in global markets for increasing the competitiveness of the country DOI: 10.36172/EKONOMISTI.2020.XVI.04.Kalandia Abstract Despite an existing global challenges, Georgia is trying to become a regional investment hub in the Caucasus. Government is developing strategies that will focus on increasing the flow of foreign direct investment. Article reviews global competitiveness index, published by The World Economic Forum (WEF). The report serves two main purposes: to help governments easily identify the factors hindering economic growth, and to help the business sector make decisions about future investment. Article analyzes the challenges Georgia faces nowadays according to report and proposes recommendations for improving the country’s weak points. Keywords: Foreign Direct Investments, Global Competitiveness, Economic Growth, Innovation Capacity. In the scientific literature, competitiveness is considered to be one of the determining factors in the inflow of foreign direct investment, as it is associated with hig Journal number 4 ∘ Giorgi Sanadze ∘ “High-Technological Man” – The Key human factor of Innovation Economics DOI: 10.36172/EKONOMISTI.2020.XVI.04.Sanadze Summary The following article clarifies some of new circumstances in line with innovative economic development. Nowadays, economic growth is closely depended on innovative and high-tech based assets. The economy is reality, raised through entrails of society, while at the same time society is a community based on a certain structure of people. In this turn, we can easily assume humans as a supreme actor within the implementation of the economy itself. The development of the economy, namely in innovative angles is impossible without human factors (theoretical constructs). In the XXI century, the demand on high tech-based production and services are increased gradually. Noteworthy, that innovation issues were relatively less popular in the economic field before the 1990s. Innovative economics is a theory, which focuses on the active use of high-tech tools and knowledge, in order to elaborate relevant products or services, u Journal number 4 ∘ Beka Zautashvili ∘ COVID-19 Adverse Effects in the Agricultural Sector and the Importance of Modern Platforms for Problem Solving DOI: 10.36172/EKONOMISTI.2020.XVI.04.Zautashvili Summary According to statistics, in many regions of the world there is an increase in poverty and aggravation of existing problems, including hunger. The current events have an unfavorable impact on various sectors, including the agriculture sector. In order to eliminate the problems and make the agro sector functioning properly, Society need to take development-oriented steps, such as digital technologies and innovation. Keywords:Agriculture; COVID-19; Digital Platforms; Technology; Innovation Journal number 4 ∘ Mesaad Ibrahim Al-Sulaim ∘ Theories and concepts on the study of trade and economic relations between countries DOI: 10.36172/EKONOMISTI.2020.XVI.04.MesaadIbrahimAl-Sulaim Abstract Initially, in the article the essence of the international economy and the international division of labor has been explained, the factors necessitating their formation have been analyzed, the main specific features of international trade, which is a key component of the international economy, and the factors influencing them have been identified, each of the classical (mercantilism, absolute advantages, comparative advantages and Heckscher-Ohlin theories) and modern (product life cycle, country similarity, economic measurement theories) international trade theories have been studied and their main features, contributions and shortcomings to international trade have been analyzed. In the end, concrete results on international trade theories have been obtained on the basis of research. Keywords: international economy, international trade, theories, international division of labour. I. Introduc