FREE ECONOMIC ZONES IN THE REPUBLIC OF AZERBAIJAN AS A NEW DIVERSIFICATION FACTOR OF THE NATIONAL ECONOMY

Expanded Summary A feature of the functioning of the world economy and international economic relations in the second half of the 20th century is the creation of free (special or special) economic zones, the construction of which is aimed, as a rule, at solving specific priority general economic, industrial, foreign trade, social, regional and scientific and technical problems. Moreover, the development of free economic zones serve to implement strategically important programs and projects based on international cooperation. At present, there are more than 4 thousand FEZ of various types in the world, which have become widespread throughout the world, ranging from industrialized countries to economically underdeveloped ones. After the collapse of the USSR, free zones are also opened in the post-Soviet space. According to experts, 40-45% of the world trade turnover is planned through special economic zones. The number of people employed in such zones will exceed 5 million people, and

Journal number 3 ∘ Giorgi Miqeladze ∘

Possibilities of econometric and statistical modeling of incomes and expenditures of Georgian households by small areas

Expanded Summary Doi: 10.36172/EKONOMISTI.2022.XVIII.03.Giorgi.Miqeladze The objective of the paper is to establish the feasibility of estimating households incomes and expenditures on the example of Georgia in a small territorial area, particularly at the municipal level. The source of households incomes, expenditures and other living conditions in Georgia is the Households Incomes and Expenditures Survey (Integrated Household Survey until 2017). The survey is selective, the data is collected monthly, aggregated data are disseminated annually and the indicators are representative of private households in Georgia at the country and administrative region level, and it is are characterized by substantial relative marginal error ranging from 4% to 65% at the municipal level [15, National Statistics Office of Georgia, Electronic Database of Households Incomes and Expenditures Survey, Calculations of the researcher]. The appendix represents the confidence intervals of the househol

Journal number 3 ∘ Zurab Garakanidze ∘ Solomon Pavliashvili ∘

Georgias role in the demonopolization of the European gas market

Expanded Summary The article discusses the role of the Southern Gas Corridor of the European Union in ensuring the economic security of Georgia. The study of the influence of energy resources on economic security is especially important in modern Georgia, if we take into account that currently, against the background of the ongoing Ukraine-Russia war, the European Union is actively considering the replacement of Russia-Ukraine transit routes with the southern gas corridor, which also passes through Georgia in the form of the "South Caucasian Gas Pipeline" built in 2007. It should be noted that in July 2022, the Prime Minister of Georgia was on a state visit to Kazakhstan and Turkmenistan, during which the prospect of further strengthening of Georgia's transit capacity was discussed. The article discusses the economic cooperation of the European Union with Georgia in the field of energy, in particular, gas; as well as those geopolitical and geoeconomic factors that directly/indirectly

Journal number 3 ∘ Besik Bolkvadze ∘

SOME ASPECTS OF THE GAMBLING BUSINESS IMPACT ON THE ECONOMY OF GEORGIA

Expanded Summary Doi: 10.36172/EKONOMISTI.2022.XVIII.03.Besik.Bolkvadze The gambling business is a specific segment of the business sector of the country and the economy in general, towards which there is an ambivalent attitude. In particular, the gambling business creates a certain added value in the economy and, at the same time, it is believed that its functioning is always associated with certain social losses. Also, the attitudes of different groups of the society towards the mentioned business are different, in particular, governmental and business circles are more positive towards the gambling business than the general population, however, this approach differs from country to country. In order to identify the role and importance of the gambling business as a specific segment of the business sector in the socio-economic development of the country, it is necessary to systematically understand and analyze all the positive and negative impacts of the gambling business on t

Journal number 3 ∘ Nana Katsitadze ∘ Elisabed Baliashvili ∘ Natella Tushishvili ∘

The way to save the mountainous regions of Georgia is the clustering of tourism

Expanded Summary anded SymmaryThe rapid development of tourism in Georgia and the benefits caused by it did not reach a significant part of the population of Georgia. In the mountainous regions of Georgia, the problem of unemployment and poverty is still acute, and the social assistance programs and redistribution schemes implemented by the government recently cannot solve the problem, and at the same time they are a heavy burden on the state budget. . There are various mechanisms that help the country overcome poverty, including in the long term. In this regard, sustainable tourism is considered as an effective mechanism that will create opportunities for economic activity and self-employment for the socially vulnerable population The article - "The way to save the mountainous regions of Georgia - is the clustering of tourism !!!" - as its title shows, discusses and justifies the need to open tourist clusters in the mountainous regions of Georgia. The authors, arguing about the ad

Journal number 3 ∘ Tengiz Verulava ∘ Avtandil Jorbenadze ∘

Reform of the hospital sector in Georgia

Expanded Summary The process of reorientation of the healthcare system, which began in 1995, envisaged the rationalization of hospital inpatient services. Optimizing the hospital system required efficient management of human and material resources. In order to decentralize medical organizations, hospitals were given full management freedom. Hospitals were given the opportunity to decide personnel allocation based on the rules. Hospital managers were given more autonomy in determining employee wages and other financial resources. Advisory boards should be established to involve the population and other stakeholders in the management of hospitals. The burden of state financing of medical organizations was distributed between the central and local governments. Local health care funds were created, which received revenues from municipal budgets. The budgetary and statutory funding of hospitals was replaced by target-program funding, which meant reimbursing the activity of the medical in

Journal number 3 ∘ Tengiz Verulava ∘ Giorgi Chiladze ∘ Temur Barkalaya ∘

Work motivation and job satisfaction among primary healthcare workers in Georgia

Expanded Summary Motivation is defined as human effort, striving, stimulation process for successful work and achievement of organizational goals. It develops as a result of the interaction of individual, organizational and cultural factors. The research question is to evaluate and analyze the characteristics of motivation and job satisfaction in the primary health care system in Georgia. Primary health care is the most equitable and effective strategy to improve the health of the population. The relevance of the issue is indicated by the poorly developed aspect of the primary health care system in Georgia. The purpose of the study is to study the factors determining the motivation and job satisfaction of primary health care personnel in Georgia, to determine their influence on the ability to achieve professional goals. The results of the study showed that the successful and effective work of the medical organization is largely related to the job satisfaction of the medical staff. T

Journal number 3 ∘ Tengiz Verulava ∘ Ketevan Omanadze ∘

Management of anti-crisis processes in medical clinics

Expanded Summary Hospitals play a major role in response and recovery from disastrous events and their role mainly focusing on saving lives. Thus, hospitals must be able to remain functioning all the time (Mulyasari, 2013) Preparedness for emergencies aims to prevention of morbidity and mortality, provision of care for casualties, , ensuring restoration of normal health, reestablishment of health services, protection of staff. Hospitals are among the healthcare centers whose prompt and efficient services can play a significant role in decreasing disaster mortality rate. According to experts, about 3.4 billion people live in a disaster hotspot. Disaster mitigation needs: risk assessment, structural and non-structural prevention, and preparedness for contingency planning and warning and evacuation. (Bajow, 2014) Being prepared to emergencies and disastrous events is a impostant of any hospital administration. Each hospital should have written and applicable pl

Journal number 3 ∘ Giorgi Kraveishvili ∘

Inclusive economic growth of Georgia in the context of post-Soviet countries

Expanded Summary Doi: 10.36172/EKONOMISTI.2022.XVIII.03.Giorgi.Kraveishvili The purpose of the article is to conduct a comparative analysis of the inclusive economic growth of the post-Soviet countries, for which the index of the inclusive economic growth of the post-Soviet countries is presented in the article. The obtained results allowed us to evaluate the inclusive economic growth of Georgia against the background of post-Soviet countries. We saw the directions that promote or hinder the country's inclusive economic growth. Based on the results, recommendations are presented at the end of the article. The main concern of any country is to ensure economic prosperity and a high standard of living for its people. Therefore, it is important that the economic growth and development of the country be equally beneficial for every citizen of this country. Today in the world there is inequality between different groups of the population, as well as a high percentage of people living belo

Journal number 3 ∘ Ana Chagelishvili ∘

Georgia in world rankings: knowledge, talent competitiveness, human capital and development

Expanded Summary Population development is the goal of every country. It does not mean only achieving economic results and is related to other factors important for development, including the accumulation of human capital or knowledge, education, formation of an environment conducive to development, talent management and other important issues. Accordingly, in the mentioned direction, the research of Georgia's positions or indices in the world rankings will gather important information for evaluating the effectiveness of the reforms and for identifying the needs of future development. The aim of the paper is to review the world indices important for the development of the population of Georgia as human resources and to reveal the problems in the relevant directions, for which the following tasks are defined: human development index, human development index adjusted according to inequality, gender development index, global knowledge index, human capital index and talent Overview of the

Journal number 3 ∘ Beka Gurgenidze ∘

Estimating probability of default using aggregate data. The case of Georgia

Expanded Summary Doi: 10.36172/EKONOMISTI.2022.XVIII.03.Beka.Gurgenidze The concept of expected credit loss is one of the key components of International Financial Reporting Standards (IFRS 9). The computation of expected credit loss depends on modern credit risk analysis, in which estimation of default probabilities are essential. In order to analyze default probabilities there are three alternative sources of information: 1. estimation from historical data; 2. calibration from the value of market instruments; 3. determination by using expert judgement [Bolder, 2018: 497]. The models which use the first type of information are widespread and include Logit and Probit models, Cox proportional-hazards models, Neural Networks, etc. It has to be mentioned that in developing countries, including in Georgia, information related to individual borrowers in Credit bureaus is limited and incomplete. Therefore, the standard estimation of default probabilities using the incomplete data has some

Journal number 3 ∘ Tamar Dolidze ∘

MAIN STAGES AND MECHANISMS OF REAL SECTOR MODERN TECHNOLOGICAL DEVELOPMENT OF ECONOMY

Expanded Summary The development of the real sector of the economy is based on the continuous process of science-technology-production and feedback between them. In general, the reason of global processes in the economy is the change in technological regimes. Technology is constantly undergoing all stages of its life cycle. The life cycle of the technological order determines the level of development of society in general. In 1730, the basic technology was the production of textile machinery, which created the first technological regime. In 1770, steam engines were created, which created the second technological regime. In 1870, electric cars were created and, accordingly, the third technological regime. In 1890, the internal combustion engine was created, which led to the creation of the fourth technological regime. In 1980, microelectronics and, accordingly, the fifth technological regime were created. In 2010, nanotechnology was created and, accordingly, the sixth technologi

Journal number 3 ∘ Mariam Matsaberidze ∘

Peculiarities of the labor market functioning in the conditions of the Covid-19 pandemic (Imereti region case)

Expanded Summary The year 2020 was difficult not only for Georgia, but also for the whole world, because the the earth population faced new challenges so called "black plague" of the 21st century or the pandemic known to everyone as Covid-19. The new disease changed the agenda and led to the adoption of new regulations that brought changes in almost all areas of human activity, including the labor market. The formation of incomes of the largest part of the population largely depends on the proper functioning of the labor market, which is directly related to the creation of the country's GDP. The impact of Covid-19 on the labor market of Georgia was one of the most pressing problems, as various institutions were closed or disrupted, many people were left without jobs or working part-time, which negatively affected their incomes and, therefore, the well-being of their families. The paper has two aims: First aim is to study the impact of the coronavirus pandemic on the labor markets o

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 3 ∘ Aytakin Akhundova ∘ FREE ECONOMIC ZONES IN THE REPUBLIC OF AZERBAIJAN AS A NEW DIVERSIFICATION FACTOR OF THE NATIONAL ECONOMY Expanded Summary A feature of the functioning of the world economy and international economic relations in the second half of the 20th century is the creation of free (special or special) economic zones, the construction of which is aimed, as a rule, at solving specific priority general economic, industrial, foreign trade, social, regional and scientific and technical problems. Moreover, the development of free economic zones serve to implement strategically important programs and projects based on international cooperation. At present, there are more than 4 thousand FEZ of various types in the world, which have become widespread throughout the world, ranging from industrialized countries to economically underdeveloped ones. After the collapse of the USSR, free zones are also opened in the post-Soviet space. According to experts, 40-45% of the world trade turnover is planned through special economic zones. The number of people employed in such zones will exceed 5 million people, and Journal number 3 ∘ Giorgi Miqeladze ∘ Possibilities of econometric and statistical modeling of incomes and expenditures of Georgian households by small areas Expanded Summary Doi: 10.36172/EKONOMISTI.2022.XVIII.03.Giorgi.Miqeladze The objective of the paper is to establish the feasibility of estimating households incomes and expenditures on the example of Georgia in a small territorial area, particularly at the municipal level. The source of households incomes, expenditures and other living conditions in Georgia is the Households Incomes and Expenditures Survey (Integrated Household Survey until 2017). The survey is selective, the data is collected monthly, aggregated data are disseminated annually and the indicators are representative of private households in Georgia at the country and administrative region level, and it is are characterized by substantial relative marginal error ranging from 4% to 65% at the municipal level [15, National Statistics Office of Georgia, Electronic Database of Households Incomes and Expenditures Survey, Calculations of the researcher]. The appendix represents the confidence intervals of the househol Journal number 3 ∘ Zurab Garakanidze ∘ Solomon Pavliashvili ∘ Georgias role in the demonopolization of the European gas market Expanded Summary The article discusses the role of the Southern Gas Corridor of the European Union in ensuring the economic security of Georgia. The study of the influence of energy resources on economic security is especially important in modern Georgia, if we take into account that currently, against the background of the ongoing Ukraine-Russia war, the European Union is actively considering the replacement of Russia-Ukraine transit routes with the southern gas corridor, which also passes through Georgia in the form of the "South Caucasian Gas Pipeline" built in 2007. It should be noted that in July 2022, the Prime Minister of Georgia was on a state visit to Kazakhstan and Turkmenistan, during which the prospect of further strengthening of Georgia's transit capacity was discussed. The article discusses the economic cooperation of the European Union with Georgia in the field of energy, in particular, gas; as well as those geopolitical and geoeconomic factors that directly/indirectly Journal number 3 ∘ Besik Bolkvadze ∘ SOME ASPECTS OF THE GAMBLING BUSINESS IMPACT ON THE ECONOMY OF GEORGIA Expanded Summary Doi: 10.36172/EKONOMISTI.2022.XVIII.03.Besik.Bolkvadze The gambling business is a specific segment of the business sector of the country and the economy in general, towards which there is an ambivalent attitude. In particular, the gambling business creates a certain added value in the economy and, at the same time, it is believed that its functioning is always associated with certain social losses. Also, the attitudes of different groups of the society towards the mentioned business are different, in particular, governmental and business circles are more positive towards the gambling business than the general population, however, this approach differs from country to country. In order to identify the role and importance of the gambling business as a specific segment of the business sector in the socio-economic development of the country, it is necessary to systematically understand and analyze all the positive and negative impacts of the gambling business on t Journal number 3 ∘ Nana Katsitadze ∘ Elisabed Baliashvili ∘ Natella Tushishvili ∘ The way to save the mountainous regions of Georgia is the clustering of tourism Expanded Summary anded SymmaryThe rapid development of tourism in Georgia and the benefits caused by it did not reach a significant part of the population of Georgia. In the mountainous regions of Georgia, the problem of unemployment and poverty is still acute, and the social assistance programs and redistribution schemes implemented by the government recently cannot solve the problem, and at the same time they are a heavy burden on the state budget. . There are various mechanisms that help the country overcome poverty, including in the long term. In this regard, sustainable tourism is considered as an effective mechanism that will create opportunities for economic activity and self-employment for the socially vulnerable population The article - "The way to save the mountainous regions of Georgia - is the clustering of tourism !!!" - as its title shows, discusses and justifies the need to open tourist clusters in the mountainous regions of Georgia. The authors, arguing about the ad Journal number 3 ∘ Tengiz Verulava ∘ Avtandil Jorbenadze ∘ Reform of the hospital sector in Georgia Expanded Summary The process of reorientation of the healthcare system, which began in 1995, envisaged the rationalization of hospital inpatient services. Optimizing the hospital system required efficient management of human and material resources. In order to decentralize medical organizations, hospitals were given full management freedom. Hospitals were given the opportunity to decide personnel allocation based on the rules. Hospital managers were given more autonomy in determining employee wages and other financial resources. Advisory boards should be established to involve the population and other stakeholders in the management of hospitals. The burden of state financing of medical organizations was distributed between the central and local governments. Local health care funds were created, which received revenues from municipal budgets. The budgetary and statutory funding of hospitals was replaced by target-program funding, which meant reimbursing the activity of the medical in Journal number 3 ∘ Tengiz Verulava ∘ Giorgi Chiladze ∘ Temur Barkalaya ∘ Work motivation and job satisfaction among primary healthcare workers in Georgia Expanded Summary Motivation is defined as human effort, striving, stimulation process for successful work and achievement of organizational goals. It develops as a result of the interaction of individual, organizational and cultural factors. The research question is to evaluate and analyze the characteristics of motivation and job satisfaction in the primary health care system in Georgia. Primary health care is the most equitable and effective strategy to improve the health of the population. The relevance of the issue is indicated by the poorly developed aspect of the primary health care system in Georgia. The purpose of the study is to study the factors determining the motivation and job satisfaction of primary health care personnel in Georgia, to determine their influence on the ability to achieve professional goals. The results of the study showed that the successful and effective work of the medical organization is largely related to the job satisfaction of the medical staff. T Journal number 3 ∘ Tengiz Verulava ∘ Ketevan Omanadze ∘ Management of anti-crisis processes in medical clinics Expanded Summary Hospitals play a major role in response and recovery from disastrous events and their role mainly focusing on saving lives. Thus, hospitals must be able to remain functioning all the time (Mulyasari, 2013) Preparedness for emergencies aims to prevention of morbidity and mortality, provision of care for casualties, , ensuring restoration of normal health, reestablishment of health services, protection of staff. Hospitals are among the healthcare centers whose prompt and efficient services can play a significant role in decreasing disaster mortality rate. According to experts, about 3.4 billion people live in a disaster hotspot. Disaster mitigation needs: risk assessment, structural and non-structural prevention, and preparedness for contingency planning and warning and evacuation. (Bajow, 2014) Being prepared to emergencies and disastrous events is a impostant of any hospital administration. Each hospital should have written and applicable pl Journal number 3 ∘ Giorgi Kraveishvili ∘ Inclusive economic growth of Georgia in the context of post-Soviet countries Expanded Summary Doi: 10.36172/EKONOMISTI.2022.XVIII.03.Giorgi.Kraveishvili The purpose of the article is to conduct a comparative analysis of the inclusive economic growth of the post-Soviet countries, for which the index of the inclusive economic growth of the post-Soviet countries is presented in the article. The obtained results allowed us to evaluate the inclusive economic growth of Georgia against the background of post-Soviet countries. We saw the directions that promote or hinder the country's inclusive economic growth. Based on the results, recommendations are presented at the end of the article. The main concern of any country is to ensure economic prosperity and a high standard of living for its people. Therefore, it is important that the economic growth and development of the country be equally beneficial for every citizen of this country. Today in the world there is inequality between different groups of the population, as well as a high percentage of people living belo Journal number 3 ∘ Ana Chagelishvili ∘ Georgia in world rankings: knowledge, talent competitiveness, human capital and development Expanded Summary Population development is the goal of every country. It does not mean only achieving economic results and is related to other factors important for development, including the accumulation of human capital or knowledge, education, formation of an environment conducive to development, talent management and other important issues. Accordingly, in the mentioned direction, the research of Georgia's positions or indices in the world rankings will gather important information for evaluating the effectiveness of the reforms and for identifying the needs of future development. The aim of the paper is to review the world indices important for the development of the population of Georgia as human resources and to reveal the problems in the relevant directions, for which the following tasks are defined: human development index, human development index adjusted according to inequality, gender development index, global knowledge index, human capital index and talent Overview of the Journal number 3 ∘ Beka Gurgenidze ∘ Estimating probability of default using aggregate data. The case of Georgia Expanded Summary Doi: 10.36172/EKONOMISTI.2022.XVIII.03.Beka.Gurgenidze The concept of expected credit loss is one of the key components of International Financial Reporting Standards (IFRS 9). The computation of expected credit loss depends on modern credit risk analysis, in which estimation of default probabilities are essential. In order to analyze default probabilities there are three alternative sources of information: 1. estimation from historical data; 2. calibration from the value of market instruments; 3. determination by using expert judgement [Bolder, 2018: 497]. The models which use the first type of information are widespread and include Logit and Probit models, Cox proportional-hazards models, Neural Networks, etc. It has to be mentioned that in developing countries, including in Georgia, information related to individual borrowers in Credit bureaus is limited and incomplete. Therefore, the standard estimation of default probabilities using the incomplete data has some Journal number 3 ∘ Tamar Dolidze ∘ MAIN STAGES AND MECHANISMS OF REAL SECTOR MODERN TECHNOLOGICAL DEVELOPMENT OF ECONOMY Expanded Summary The development of the real sector of the economy is based on the continuous process of science-technology-production and feedback between them. In general, the reason of global processes in the economy is the change in technological regimes. Technology is constantly undergoing all stages of its life cycle. The life cycle of the technological order determines the level of development of society in general. In 1730, the basic technology was the production of textile machinery, which created the first technological regime. In 1770, steam engines were created, which created the second technological regime. In 1870, electric cars were created and, accordingly, the third technological regime. In 1890, the internal combustion engine was created, which led to the creation of the fourth technological regime. In 1980, microelectronics and, accordingly, the fifth technological regime were created. In 2010, nanotechnology was created and, accordingly, the sixth technologi Journal number 3 ∘ Mariam Matsaberidze ∘ Peculiarities of the labor market functioning in the conditions of the Covid-19 pandemic (Imereti region case) Expanded Summary The year 2020 was difficult not only for Georgia, but also for the whole world, because the the earth population faced new challenges so called "black plague" of the 21st century or the pandemic known to everyone as Covid-19. The new disease changed the agenda and led to the adoption of new regulations that brought changes in almost all areas of human activity, including the labor market. The formation of incomes of the largest part of the population largely depends on the proper functioning of the labor market, which is directly related to the creation of the country's GDP. The impact of Covid-19 on the labor market of Georgia was one of the most pressing problems, as various institutions were closed or disrupted, many people were left without jobs or working part-time, which negatively affected their incomes and, therefore, the well-being of their families. The paper has two aims: First aim is to study the impact of the coronavirus pandemic on the labor markets o