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 1 ∘ Vakhtang Burduli ∘

PROSPECTS FOR INNOVATIVE DEVELOPMENT OF SECTORS OF THE ECONOMY OF GEORGIA IN THE NEXT DECADE

10.36172/EKONOMISTI.2021.XVIII.01.Vakhtang.Burduli Expanded Summary The first part of the work shows that there are factors that prevent the widespread introduction of basic and improving innovations in production and, consequently, the accelerated and balanced development of the economy. These are mainly problems associated with the difficulties of attracting basic and improving innovations to sectors and subsectors of the country's economy, difficulties associated with the sale of products intended for production in foreign markets, difficulties associated with financing innovations. The vast majority of basic and improving innovations introduced into sectors and subsectors of the economy, Georgia, like most other small and medium-sized countries, is forced to import either through the purchase of new process technologies or through the organization of joint ventures with foreign partners. In solving this problem, business should be assisted by the organization of innovation

Journal number 1 ∘ Paata Koguashvili ∘ Ramaz Gakhokidze ∘

TRADITIONAL DIET AS A KEY FACTOR OF VIABILITY OF THE POPULATION

10.36172/EKONOMISTI.2021.XVIII.01.Paata.Koguashvili.Ramaz.Gakhokidze Expanded Summary Fighting to gain competitive advantages in modern world is in progress not only among state arrangement models, but also among the models of national households and forms of Economic Sectors' organization and leadership. The thing, which is optimal for the Chinese or American people possible not to be optimal for us. We have different national specifics (character, habits), which leads being of nation and different aspects of household to special features. Also we have different mechanisms to regulate relationship between people -psychological, traditional, defined by a scale of values, cultural, appreciation of land and etc. Obviously it’s necessary agro food sector to be reformed and to find different approach of development. Also it must be implemented with considering Georgian (Georgian traditional) specifics and not by copying other countries’ (even very successful) experience

Journal number 1 ∘ Marina Muchiashvili ∘ Zamira Shonia ∘

Statistical Assessment of the impact of covid-19 on Sustainability of government debt of Georgia

10.36172/EKONOMISTI.2021.XVIII.01.Marina.Muchiashvili.Zamira.Shonia Expanded Summary The effectiveness of a fiscal policy is a major factor in determining macroeconomic performance of the country. The Georgian government has sought to use its taxation, spending and borrowing powers to manage the allocation of scare resources to achieve economic stability and growth. Despite this impressive goals, the results of the fiscal policy in our country are far from favorable. Georgia nowadays is facing serious problems in this sphere. Decrease of the economic growth rates in Georgia and increased fiscal deficit and public debt (both foreign and internal) since 2012 year, especially in 2020 2021 years, have made it actual to assess government debt sustainability in Georgia in medium and long terms. Following the present level of the public debt of Georgia, the work considers the evaluation of the fiscal sustainability of the country and identification and control of macroeconomic

Journal number 1 ∘ Nino Jerenashvili ∘

Covid 19s Impact on International Business

10.36172/EKONOMISTI.2021.XVIII.01.Nino.Jerenashvili Expanded Summary The whole history of mankind is connected with business. The activities of any human species, from plasma reaction research to Renaissance paintings, are related to business. Business is a necessary and inevitable component of human life; - Conflicts that arise in the field of business are a source of economic development; - Business - This is a historically constant event. Keywords: Pandemic; Covid 19; International Business; International trade; China International business and the environment in which international trade takes place. The forms of international business and the differences between domestic trade and foreign trade. Focused on the most pressing and pressing problem facing international companies and organizations around the world today. As an example, considered China, which needs to keep pace with current events so as not to lag behind in progress. Although there ar

Journal number 1 ∘ Emir Eteria ∘

Economic Dimension of the EU-Georgia Association Agreement: Theory and Practical Implications

10.36172/EKONOMISTI.2021.XVIII.01.Emir.Eteria Annotation. This article aims to analyze an economic dimension of the EU-Georgia Association Agreement (AA), including its integral part on Deep and Comprehensive Free Trade Area (DCFTA) in the light of economic integration theories, as well as to observe results of the implementation of the Association Agreement in 2014-2019. In contrast to other bilateral trade agreements of the EU, a DCFTA is a new type of trade agreement, which aims at gradual economic integration of Georgia with the EU. A gradual economic integration encompasses trade integration, factor integration as well as sectoral integration, policy and institutional integration. However, trade data on the EU-Georgia relations demonstrate insignificant growth of trade integration of Georgia with the EU. In addition, data on capital movement does not reveal a significant increase in Foreign Direct Investments (FDI) from the EU countries to Georgia. Consequently, since 2014, despi

Journal number 1 ∘ Tamila Nutsubidze ∘

HOW DOES INFORMAL AND NON-STANDARD EMPLOYMENT AFFECT SOCIAL POLICY?

10.36172/EKONOMISTI.2021.XVIII.01.Tamila.Nutsubidze Abstract The objective of this paper is to highlight the increased awareness of the global society about trends in labor markets and their implications for workers and social protection policy. The recent pandemic has just highlighted issues related to informal and Non-Standard workers in developing, emerging, and advanced economies. Evidence and hypothetical findings suggest that working-life income poverty and retirement income insecurity are the main consequences of informal and non-standard employment arrangements impacting social protection policy around the world. High risks of poverty and vulnerability among workers emphasize the importance of the role of the state, and in particular public social insurance and non-contributory pension programs. Key words:informality, social protection policy, labor policies, public finance Introduction The COVID-19 Pandemic highlighted the precarious nature

Journal number 1 ∘ Manana kharkheli ∘ Giorgi Morchiladze ∘

Issues to Consider When Changing Business Models in the Post-Pandemic Period

10.36172/EKONOMISTI.2021.XVIII.01.Manana.Kharkheli.Giorgi.Morchiladze Expanded Summary The pandemic has had a significant impact on various aspects of human life. Business, in the world and in Georgia, has faced significant difficulties and challenges. According to the World Bank, the world Gross Domestic Product (GDP) in 2019 was equal to 87.735 trillion US dollars, and in 2020 , it decreased by 3.39 %[1]. The situation in Georgia was even worse, as according to the National Statistics Office, the real GDP growth rate in 2020 was equal to minus 6.8 %[2] compared to the previous year. The above-mentioned statistics show that business became more difficult to do in 2020 and even more complicated in 2021. Amid intensified competition, business in order to be able to operate and succeed, it is necessary to adapt to a new environment, which is often related to a change in business model. Сhanging of business models are complex and difficult process, This is why we have devoted consider

Journal number 1 ∘ Tengiz Verulava ∘ Kakha Shengelia ∘ Giorgi Makharashvili ∘

Challenges of distance learning in universities during the COVID-19 pandemic

10.36172/EKONOMISTI.2021.XVIII.01.Tengiz.Verulava.Kakha.Shengelia.Giorgi.Makharashvili Expanded Summary The transition to distance learning, which is one of the most effective means of combating the COVID-19 pandemic, has posed many challenges to society and the economy. The aim of the study is to evaluate distance learning as a result of the pandemic from the perspective of students and teachers. Quantitative research was conducted using a self-administered, online questionnaire. 417 students and 47 teachers from three major universities of Georgia participated in the study. Respondents evaluate the distance learning process positively because it saves costs, leaves more free time, focuses more on independent learning, gained new useful experiences and skills, is more mobile and has the opportunity to attend lectures from any location. It is especially accessible to students living in villages and remote areas. Most of the respondents enjoy working from home as they have comfortable

Journal number 1 ∘ Teona Maisuradze ∘

Challenges with the individual and group productivity

10.36172/EKONOMISTI.2021.XVIII.01.Teona.Maisuradze Annotation.The workplace has never been such a diverse and full of changes as it is today. The diversity of jobs in an organization creates different demands on people, which in itself leads to diversity of behavior and creates multidimensional models of job performance. Acceleration of the current processes and changes of modern technology makes workplace more diverse and busy, which has a greater impact on the productivity. Increased teleworking jobs due to the spread of COVID19 worldwide since 2020 has made it even more challenged. It has affected on the nature of both group and individual productivity. Vague present and future increased stress level of the employees. It is not new that high level of organizational stress is directly related to productivity. When the stress level is high, both person's and a group’s ability to use full potential and complete the tasks with an efficiency – decreases. The pape

Journal number 1 ∘ Tamar Arjevanidze ∘

Global Logistics and Prospects for Georgian Rail Transportation

10.36172/EKONOMISTI.2021.XVIII.01.Tamar.Arjevanidze Expanded Summary The article discusses the opportunities and prospects of Georgia as a country with geopolitical potential in the global transport logistics, including the development of Georgian railways and the analysis of logistical measures designed to maintain the stability of rail freight. In last years the development of entrepreneurial strategy has become dependent on world logistics. To do this, enterprises use logistics in different ways, with their own methods and priorities. Globalization of economy is impossible without good logistics. Customers are focused on finding an enterprise that provides transportation and logistics. Since logistics becomes international when the supply network crosses a national border, the creation of large logistics channels facilitates the development of international freight companies. As we know, global logistical management involves more complex documents and requires regulation by gov

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 1 ∘ Vakhtang Burduli ∘ PROSPECTS FOR INNOVATIVE DEVELOPMENT OF SECTORS OF THE ECONOMY OF GEORGIA IN THE NEXT DECADE 10.36172/EKONOMISTI.2021.XVIII.01.Vakhtang.Burduli Expanded Summary The first part of the work shows that there are factors that prevent the widespread introduction of basic and improving innovations in production and, consequently, the accelerated and balanced development of the economy. These are mainly problems associated with the difficulties of attracting basic and improving innovations to sectors and subsectors of the country's economy, difficulties associated with the sale of products intended for production in foreign markets, difficulties associated with financing innovations. The vast majority of basic and improving innovations introduced into sectors and subsectors of the economy, Georgia, like most other small and medium-sized countries, is forced to import either through the purchase of new process technologies or through the organization of joint ventures with foreign partners. In solving this problem, business should be assisted by the organization of innovation Journal number 1 ∘ Paata Koguashvili ∘ Ramaz Gakhokidze ∘ TRADITIONAL DIET AS A KEY FACTOR OF VIABILITY OF THE POPULATION 10.36172/EKONOMISTI.2021.XVIII.01.Paata.Koguashvili.Ramaz.Gakhokidze Expanded Summary Fighting to gain competitive advantages in modern world is in progress not only among state arrangement models, but also among the models of national households and forms of Economic Sectors' organization and leadership. The thing, which is optimal for the Chinese or American people possible not to be optimal for us. We have different national specifics (character, habits), which leads being of nation and different aspects of household to special features. Also we have different mechanisms to regulate relationship between people -psychological, traditional, defined by a scale of values, cultural, appreciation of land and etc. Obviously it’s necessary agro food sector to be reformed and to find different approach of development. Also it must be implemented with considering Georgian (Georgian traditional) specifics and not by copying other countries’ (even very successful) experience Journal number 1 ∘ Marina Muchiashvili ∘ Zamira Shonia ∘ Statistical Assessment of the impact of covid-19 on Sustainability of government debt of Georgia 10.36172/EKONOMISTI.2021.XVIII.01.Marina.Muchiashvili.Zamira.Shonia Expanded Summary The effectiveness of a fiscal policy is a major factor in determining macroeconomic performance of the country. The Georgian government has sought to use its taxation, spending and borrowing powers to manage the allocation of scare resources to achieve economic stability and growth. Despite this impressive goals, the results of the fiscal policy in our country are far from favorable. Georgia nowadays is facing serious problems in this sphere. Decrease of the economic growth rates in Georgia and increased fiscal deficit and public debt (both foreign and internal) since 2012 year, especially in 2020 2021 years, have made it actual to assess government debt sustainability in Georgia in medium and long terms. Following the present level of the public debt of Georgia, the work considers the evaluation of the fiscal sustainability of the country and identification and control of macroeconomic Journal number 1 ∘ Nino Jerenashvili ∘ Covid 19s Impact on International Business 10.36172/EKONOMISTI.2021.XVIII.01.Nino.Jerenashvili Expanded Summary The whole history of mankind is connected with business. The activities of any human species, from plasma reaction research to Renaissance paintings, are related to business. Business is a necessary and inevitable component of human life; - Conflicts that arise in the field of business are a source of economic development; - Business - This is a historically constant event. Keywords: Pandemic; Covid 19; International Business; International trade; China International business and the environment in which international trade takes place. The forms of international business and the differences between domestic trade and foreign trade. Focused on the most pressing and pressing problem facing international companies and organizations around the world today. As an example, considered China, which needs to keep pace with current events so as not to lag behind in progress. Although there ar Journal number 1 ∘ Emir Eteria ∘ Economic Dimension of the EU-Georgia Association Agreement: Theory and Practical Implications 10.36172/EKONOMISTI.2021.XVIII.01.Emir.Eteria Annotation. This article aims to analyze an economic dimension of the EU-Georgia Association Agreement (AA), including its integral part on Deep and Comprehensive Free Trade Area (DCFTA) in the light of economic integration theories, as well as to observe results of the implementation of the Association Agreement in 2014-2019. In contrast to other bilateral trade agreements of the EU, a DCFTA is a new type of trade agreement, which aims at gradual economic integration of Georgia with the EU. A gradual economic integration encompasses trade integration, factor integration as well as sectoral integration, policy and institutional integration. However, trade data on the EU-Georgia relations demonstrate insignificant growth of trade integration of Georgia with the EU. In addition, data on capital movement does not reveal a significant increase in Foreign Direct Investments (FDI) from the EU countries to Georgia. Consequently, since 2014, despi Journal number 1 ∘ Tamila Nutsubidze ∘ HOW DOES INFORMAL AND NON-STANDARD EMPLOYMENT AFFECT SOCIAL POLICY? 10.36172/EKONOMISTI.2021.XVIII.01.Tamila.Nutsubidze Abstract The objective of this paper is to highlight the increased awareness of the global society about trends in labor markets and their implications for workers and social protection policy. The recent pandemic has just highlighted issues related to informal and Non-Standard workers in developing, emerging, and advanced economies. Evidence and hypothetical findings suggest that working-life income poverty and retirement income insecurity are the main consequences of informal and non-standard employment arrangements impacting social protection policy around the world. High risks of poverty and vulnerability among workers emphasize the importance of the role of the state, and in particular public social insurance and non-contributory pension programs. Key words:informality, social protection policy, labor policies, public finance Introduction The COVID-19 Pandemic highlighted the precarious nature Journal number 1 ∘ Manana kharkheli ∘ Giorgi Morchiladze ∘ Issues to Consider When Changing Business Models in the Post-Pandemic Period 10.36172/EKONOMISTI.2021.XVIII.01.Manana.Kharkheli.Giorgi.Morchiladze Expanded Summary The pandemic has had a significant impact on various aspects of human life. Business, in the world and in Georgia, has faced significant difficulties and challenges. According to the World Bank, the world Gross Domestic Product (GDP) in 2019 was equal to 87.735 trillion US dollars, and in 2020 , it decreased by 3.39 %[1]. The situation in Georgia was even worse, as according to the National Statistics Office, the real GDP growth rate in 2020 was equal to minus 6.8 %[2] compared to the previous year. The above-mentioned statistics show that business became more difficult to do in 2020 and even more complicated in 2021. Amid intensified competition, business in order to be able to operate and succeed, it is necessary to adapt to a new environment, which is often related to a change in business model. Сhanging of business models are complex and difficult process, This is why we have devoted consider Journal number 1 ∘ Tengiz Verulava ∘ Kakha Shengelia ∘ Giorgi Makharashvili ∘ Challenges of distance learning in universities during the COVID-19 pandemic 10.36172/EKONOMISTI.2021.XVIII.01.Tengiz.Verulava.Kakha.Shengelia.Giorgi.Makharashvili Expanded Summary The transition to distance learning, which is one of the most effective means of combating the COVID-19 pandemic, has posed many challenges to society and the economy. The aim of the study is to evaluate distance learning as a result of the pandemic from the perspective of students and teachers. Quantitative research was conducted using a self-administered, online questionnaire. 417 students and 47 teachers from three major universities of Georgia participated in the study. Respondents evaluate the distance learning process positively because it saves costs, leaves more free time, focuses more on independent learning, gained new useful experiences and skills, is more mobile and has the opportunity to attend lectures from any location. It is especially accessible to students living in villages and remote areas. Most of the respondents enjoy working from home as they have comfortable Journal number 1 ∘ Teona Maisuradze ∘ Challenges with the individual and group productivity 10.36172/EKONOMISTI.2021.XVIII.01.Teona.Maisuradze Annotation.The workplace has never been such a diverse and full of changes as it is today. The diversity of jobs in an organization creates different demands on people, which in itself leads to diversity of behavior and creates multidimensional models of job performance. Acceleration of the current processes and changes of modern technology makes workplace more diverse and busy, which has a greater impact on the productivity. Increased teleworking jobs due to the spread of COVID19 worldwide since 2020 has made it even more challenged. It has affected on the nature of both group and individual productivity. Vague present and future increased stress level of the employees. It is not new that high level of organizational stress is directly related to productivity. When the stress level is high, both person's and a group’s ability to use full potential and complete the tasks with an efficiency – decreases. The pape Journal number 1 ∘ Tamar Arjevanidze ∘ Global Logistics and Prospects for Georgian Rail Transportation 10.36172/EKONOMISTI.2021.XVIII.01.Tamar.Arjevanidze Expanded Summary The article discusses the opportunities and prospects of Georgia as a country with geopolitical potential in the global transport logistics, including the development of Georgian railways and the analysis of logistical measures designed to maintain the stability of rail freight. In last years the development of entrepreneurial strategy has become dependent on world logistics. To do this, enterprises use logistics in different ways, with their own methods and priorities. Globalization of economy is impossible without good logistics. Customers are focused on finding an enterprise that provides transportation and logistics. Since logistics becomes international when the supply network crosses a national border, the creation of large logistics channels facilitates the development of international freight companies. As we know, global logistical management involves more complex documents and requires regulation by gov