Journal number 4 ∘ Tamara Hovakimyan ∘ Hayk Mnatsakanyan ∘ Firuza Mayilyan ∘ Suren Hovakimyan ∘

CURRENT PROCESSES AND CHALLENGES IN SCIENTIFIC AND ECONOMIC RELATIONS

10.36172/EKONOMISTI.2023.XIX.04.Tamara.Hovakimyan/Hayk.Mnatsakanyan/Firuza.Mayilyan/Suren.Hovakimyan Annotation. For the first time in history, the human mind has become a direct productive force, fostering the development of the "knowledge economy". However, the knowledge use alone does not reflect the true content of the latest scientific and economic revolution, because all the revolutionary transformations since the middle of the 18th century have been characterized by the development of knowledge and scientific innovations. The aim of the article is to explore the revolutionary aspects of the current scientific and economic relations and to reveal the related challenges that need to be addressed. In order to achieve the stated aim, the authors use the methods of quantitative cluster analysis based on the classical principles of isomorphism and entropy. Keywords: isomorphism, entropy, scientific and economic relations, simulation model, panel analysis. 1. Introducti

Journal number 4 ∘ Marina Tabatadze ∘ Malkhaz Chikobava ∘

State Strategy of Economic Rehabilitation During a Post-crisis Period

10.36172/EKONOMISTI.2023.XIX.04.Marina.Tabatadze/Malkhaz.Chikobava Annotation.The paper discusses the governance standards of the modern world economy and 01003019427the strategies of its stable development. More precisely, it assesses the issues of correct coordination of global economic systems in a crisis environment and the optimal distribution of functions between individual levels of socio-economic systems. The perspectives of the national economy are discussed based on the analysis of international and EU expert assessments, ranking organizations and opinions of various researchers. Empirical research evaluates the global trends of crisis management and studies the example of Georgia during and after covid-19 pandemic crisis. As a result of this research, the forecasts of the economic development in the post-crisis period are given and the optimal development strategy in the non-ordinary environment is defined. Useful recommendations are developed for scientific researchers and

Journal number 4 ∘ EKATERINE SHAINIDZE ∘

Peculiarities of taxpayers behavior on some tax regulations

10.36172/EKONOMISTI.2023.XIX.04.EKATERINE.SHAINIDZE Expanded Summary In order to fulfill the obligations undertaken within the framework of the association agreement, a number of tax reforms were implemented in our country, the purpose of which is tax liberalization and promotion of entrepreneurship development. However, it is interesting whether the introduced mechanism works effectively and whether it is correctly perceived by the tax payer. Within the framework of the research, we studied the behavior of taxpayers in relation to several tax regulations, the purpose of which was tax evasion. As is known, with the introduction of the new tax code in 2011, special regimes of income tax taxation were defined, including the status of small business, within the framework of which the annual turnover allowed for payers with the mentioned status was defined as 100,000 GEL, and the tax rate was 5% or 3%. As of July 1, 2018, the annual threshold allowed for persons with small b

Journal number 4 ∘ Merab Julakidze ∘

Economical aspects ofthe National Wealth of Georgia

10.36172/EKONOMISTI.2023.XIX.04.Merab.Julakidze Expanded Summary The article discusses the main topics concerning the estimation of National Wealth of Georgia. Namely, it analyses the components of National Wealth: human and natural capital and produced assets, it studies the criteria of determining their optimal proportions and finally, it justifies the necessity of rapid rate of human capital development when dealing with new challenges in estimation of the country’s economic potential and implementation of economic safety program. National wealth, the measure of produced and accumulated well-being at a specific point in time, stands as a key indicator of a country’s economic power. It comprises the material well-being generated and amassed through the labor resources of previous and current generations, the natural resources engaged in production, and the value of capital minus depreciation. In national wealth accounting, national wealth is defined

Journal number 4 ∘ Levan Sabauri ∘ Mariam Vardiashvili ∘ Marina Maisuradze ∘

On Recognition of Contract Asset and Contract Liability in the Financial Statements

10.36172/EKONOMISTI.2023.XIX.04.Levan.Sabauri/Mariam.Vardiashvili/Marina.Maisuradze Annotation. With the publication of the International Financial Reporting Standard (IFRS) 15 “Revenue from Contracts with Customers”, approaches to recognition and methods of measurement of the revenues have changed fundamentally. The standard considers a contract liability as a reference point for accounting coordinates, for transferring control over an asset (goods or services) and determining the moment of recognition of revenue to the seller. In the fulfillment of the performance obligations in the contract with the customer, assets or liabilities may arise that are directly related to the performance of the terms of the contract by any of the parties to the contract. Depending on the situation in terms of the fulfillment of the obligation by the entity and payment by the customer, the entity must reflect this contract in the statement of financial condition in the form of a contract

Journal number 4 ∘ Revaz Javakhishvili ∘

US experience in the field of economic security

10.36172/EKONOMISTI.2023.XIX.04.Revaz.Javakhishvili Expanded Summary Ensuring economic security was given great attention at all stages of political and socio-economic development of the USA. At the same time, according to individual stages, approaches to the national and economic security of the country changed.. During R Reagan's presidency, in this regard, the powerful concept of achieving national security and establishing peace in the world was brought to the fore, which was more based on the country's military strength and the use of the latest innovative technologies to achieve it. During. the President D Trump administration, the security strategy presented in 2017 focused on four main key areas: 1. Protecting the country and the way of life of the American people; 2. Ensuring the well-being of America; 3. Maintaining peace by forceful means; 4. Expansion of American influence in the world. If the previous administrations analyzed and assessed economic threats ind

Journal number 4 ∘ Tengiz Verulava ∘

Strategic management process in Georgian hospitals

10.36172/EKONOMISTI.2023.XIX.04.Tengiz.Verulava Expanded Summary Introduction: In order to better adapt to the constantly changing global and local environment, the main priority of the healthcare system is the operation of a stable hospital sector, for which it is necessary to constantly implement effective strategic management processes. The purpose of the study is to study the process of strategic management in the hospital sector of Georgia. Methodology: As part of the quantitative research, a survey of 23 top managers of 10 large hospitals in Tbilisi was conducted using a pre-structured questionnaire. Research findings: None of the hospitals used external consultants for strategic planning. Very few hospitals participated in lectures and trainings on strategic planning (13%), only one inpatient had a strategic planning committee (4.3%), most of the inpatients interviewed (87%) had a documented strategic plan; The management board was mostly involved in strategic planning (

Journal number 4 ∘ Aytakin Gasan Akhundova ∘

FESTIVALS AS CATALYSTS OF EVENT TOURISM: A THEORETICAL ANALYSIS

Expanded Summary In modern society, in the conditions of global changes, festivals have become one of the most popular forms of socio-cultural activities. Festivals have become so popular that in the second half of the twentieth century the concept of "world festival movement" appeared. Being one of the types of event tourism, festivals have become an integral and important component of modern culture, providing unique opportunities for effective intercultural communication. These events promote tolerance, respect and cooperation between different communities. Festivals contribute to the active development of the economy of tourist regions. The large number of tourists coming to the festival contributes to the active development of local businesses, hotel industry, restaurants, souvenir stores and craft workshops. This creates new jobs, promotes active investment and overall economic growth in the region. They play an important role in popularizing a country, region, city or a parti

Journal number 4 ∘ Avtandil Sulaberidze ∘ Joseph Archvadze ∘ Vladimer Sulaberidze ∘ Natalia Kopaleishvili ∘

From Baby Boom to Depopulation

Summary Georgia has witnessed a sharp decline in fertility after obtaining independence, namely, since the beginning of the 1990s. During more than the last three decades the total fertility rate lagged behind the level necessary for the replacement level fertility within four years out of every five. If the mentioned rate had been on the level sufficient for the replacement level fertility (2.1) 272 thousand more children (more by 18.4%) than the actual figure would have been born in Georgia. In other words, the figure would have been substantially higher than the number of individuals currently living in the regions of Abkhazia and Tskhinvali. The main goal of the research is to manifest and analyze the demographic factors which influence the decline in fertility and formulate recommendations by juxtaposing two generations of reproductive age. In addition to the theoretical-methodological issues concerning fertility, the article also makes use of the official demographic dat

Journal number 4 ∘ Tinatin Loladze ∘

Important Aspects of the Impact of Innovation on Unemployment

Annotation. Today, successful modernization of the economy is achieved through competitive human capital, which is a significant factor of socio-economic development and competitiveness of the country's economy. It is no coincidence that at the beginning of the new millennium, many countries are moving to the "knowledge economy", where special importance is attached to human capital, which has a direct impact on economic indicators, activation of innovative processes and competitiveness. This paper reviews from a theoretical point of view the results of the works of leading economists covering the impact of innovation on employment at the micro and industry level. The effect of innovation on labor demand is not easy to study. Innovation and unemployment are two interrelated economic elements that have been discussed continuously in economic debates since the beginning of the 21st century. The conventional approach views innovation as a tool for economic transformation, resulting in e

Journal number 4 ∘ Lasha Kelikhashvili ∘

Dynamics of Government Debt in the World and in Georgia and associated Challenges in the Context of Global Monetary Policy Tightening

Expanded Summary The paper aims to evaluate current trends in public debt around the world, including Georgia. The paper assesses historical background of public debt and the main drivers of borrowing from past centuries to this time. Until the mid-17th century, the mobilization of credit resources by the government was mainly carried out to finance military operations (Stasavage, 2011). From the middle of the 17th century, as a result of the Peace of Westphalia, a relatively peaceful period has established between the European states, and from this period purpose mobilization of credit resources were significantly changed (Yun-Casalilla, O'Brien, 2015). This tendency, on the one hand was caused by the strengthening of state institutions, and on the other hand, by the increase in the demand for public goods due to growing urbanization. As a result, from this period instead of financing wars, public services (water pipelines, road infrastructure, education, etc.) were more actively fi

Journal number 4 ∘ David Roinishvili ∘

Labor market failure induced by the education system in Georgia and Russia

Expanded Summary The study examines the failure in the Georgian labor market caused by the failure of the education system. Additionally, it conducts a comparative analysis of the Russian labor market, thereby facilitating an examination of the labor market dynamics in both countries. The population of developing countries has observed the rapid economic growth and high standard of living in developed nations. Conversely, in economically underdeveloped countries, this indicator changes imperceptibly from generation to generation. The inability of certain countries, such as Georgia, to achieve high economic growth rates and improve the standard of living across generations prompts inquiry. One plausible explanation lies within the labor markets of these nations, specifically in its failures that contribute to an inefficient equilibrium and hinder the prevention of undesirable disequilibrium. Education is considered to hold a pivotal role in the labor market, and a breakdown in the ed

Journal number 4 ∘ Irma Lang ∘

The Repercussions the Covid-19 pandemic had on the global economy and international trade flows

Annotation.The paper analyzes the impact of Covid-19 on the global economy. Economies, financial systems and tightly interconnected supply chains have all come under pressure. The Covid-19 pandemic has generated a dramatic loss. The outbreak of the pandemic has had more of a significant negative impact on developing economies. All countries around the world are still trying to cope with the ongoing crisis created by the COVID-19 pandemic. The World Trade Organization reduced the global trade growth forecast for 2020-2021 and cited the coronavirus pandemic as the reason. The article shows that despite the restrictions caused by the pandemic, the world is in a recovery stage and many anti-crisis reforms have been implemented. Although the world trade system has improved in 2022, additional efforts are needed from all governments around the world.These efforts will be directed toward improving their economy and business environment.The three main elements that are vital to a successful tr

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 ∘ Tamara Hovakimyan ∘ Hayk Mnatsakanyan ∘ Firuza Mayilyan ∘ Suren Hovakimyan ∘ CURRENT PROCESSES AND CHALLENGES IN SCIENTIFIC AND ECONOMIC RELATIONS 10.36172/EKONOMISTI.2023.XIX.04.Tamara.Hovakimyan/Hayk.Mnatsakanyan/Firuza.Mayilyan/Suren.Hovakimyan Annotation. For the first time in history, the human mind has become a direct productive force, fostering the development of the "knowledge economy". However, the knowledge use alone does not reflect the true content of the latest scientific and economic revolution, because all the revolutionary transformations since the middle of the 18th century have been characterized by the development of knowledge and scientific innovations. The aim of the article is to explore the revolutionary aspects of the current scientific and economic relations and to reveal the related challenges that need to be addressed. In order to achieve the stated aim, the authors use the methods of quantitative cluster analysis based on the classical principles of isomorphism and entropy. Keywords: isomorphism, entropy, scientific and economic relations, simulation model, panel analysis. 1. Introducti Journal number 4 ∘ Marina Tabatadze ∘ Malkhaz Chikobava ∘ State Strategy of Economic Rehabilitation During a Post-crisis Period 10.36172/EKONOMISTI.2023.XIX.04.Marina.Tabatadze/Malkhaz.Chikobava Annotation.The paper discusses the governance standards of the modern world economy and 01003019427the strategies of its stable development. More precisely, it assesses the issues of correct coordination of global economic systems in a crisis environment and the optimal distribution of functions between individual levels of socio-economic systems. The perspectives of the national economy are discussed based on the analysis of international and EU expert assessments, ranking organizations and opinions of various researchers. Empirical research evaluates the global trends of crisis management and studies the example of Georgia during and after covid-19 pandemic crisis. As a result of this research, the forecasts of the economic development in the post-crisis period are given and the optimal development strategy in the non-ordinary environment is defined. Useful recommendations are developed for scientific researchers and Journal number 4 ∘ EKATERINE SHAINIDZE ∘ Peculiarities of taxpayers behavior on some tax regulations 10.36172/EKONOMISTI.2023.XIX.04.EKATERINE.SHAINIDZE Expanded Summary In order to fulfill the obligations undertaken within the framework of the association agreement, a number of tax reforms were implemented in our country, the purpose of which is tax liberalization and promotion of entrepreneurship development. However, it is interesting whether the introduced mechanism works effectively and whether it is correctly perceived by the tax payer. Within the framework of the research, we studied the behavior of taxpayers in relation to several tax regulations, the purpose of which was tax evasion. As is known, with the introduction of the new tax code in 2011, special regimes of income tax taxation were defined, including the status of small business, within the framework of which the annual turnover allowed for payers with the mentioned status was defined as 100,000 GEL, and the tax rate was 5% or 3%. As of July 1, 2018, the annual threshold allowed for persons with small b Journal number 4 ∘ Merab Julakidze ∘ Economical aspects ofthe National Wealth of Georgia 10.36172/EKONOMISTI.2023.XIX.04.Merab.Julakidze Expanded Summary The article discusses the main topics concerning the estimation of National Wealth of Georgia. Namely, it analyses the components of National Wealth: human and natural capital and produced assets, it studies the criteria of determining their optimal proportions and finally, it justifies the necessity of rapid rate of human capital development when dealing with new challenges in estimation of the country’s economic potential and implementation of economic safety program. National wealth, the measure of produced and accumulated well-being at a specific point in time, stands as a key indicator of a country’s economic power. It comprises the material well-being generated and amassed through the labor resources of previous and current generations, the natural resources engaged in production, and the value of capital minus depreciation. In national wealth accounting, national wealth is defined Journal number 4 ∘ Levan Sabauri ∘ Mariam Vardiashvili ∘ Marina Maisuradze ∘ On Recognition of Contract Asset and Contract Liability in the Financial Statements 10.36172/EKONOMISTI.2023.XIX.04.Levan.Sabauri/Mariam.Vardiashvili/Marina.Maisuradze Annotation. With the publication of the International Financial Reporting Standard (IFRS) 15 “Revenue from Contracts with Customers”, approaches to recognition and methods of measurement of the revenues have changed fundamentally. The standard considers a contract liability as a reference point for accounting coordinates, for transferring control over an asset (goods or services) and determining the moment of recognition of revenue to the seller. In the fulfillment of the performance obligations in the contract with the customer, assets or liabilities may arise that are directly related to the performance of the terms of the contract by any of the parties to the contract. Depending on the situation in terms of the fulfillment of the obligation by the entity and payment by the customer, the entity must reflect this contract in the statement of financial condition in the form of a contract Journal number 4 ∘ Revaz Javakhishvili ∘ US experience in the field of economic security 10.36172/EKONOMISTI.2023.XIX.04.Revaz.Javakhishvili Expanded Summary Ensuring economic security was given great attention at all stages of political and socio-economic development of the USA. At the same time, according to individual stages, approaches to the national and economic security of the country changed.. During R Reagan's presidency, in this regard, the powerful concept of achieving national security and establishing peace in the world was brought to the fore, which was more based on the country's military strength and the use of the latest innovative technologies to achieve it. During. the President D Trump administration, the security strategy presented in 2017 focused on four main key areas: 1. Protecting the country and the way of life of the American people; 2. Ensuring the well-being of America; 3. Maintaining peace by forceful means; 4. Expansion of American influence in the world. If the previous administrations analyzed and assessed economic threats ind Journal number 4 ∘ Tengiz Verulava ∘ Strategic management process in Georgian hospitals 10.36172/EKONOMISTI.2023.XIX.04.Tengiz.Verulava Expanded Summary Introduction: In order to better adapt to the constantly changing global and local environment, the main priority of the healthcare system is the operation of a stable hospital sector, for which it is necessary to constantly implement effective strategic management processes. The purpose of the study is to study the process of strategic management in the hospital sector of Georgia. Methodology: As part of the quantitative research, a survey of 23 top managers of 10 large hospitals in Tbilisi was conducted using a pre-structured questionnaire. Research findings: None of the hospitals used external consultants for strategic planning. Very few hospitals participated in lectures and trainings on strategic planning (13%), only one inpatient had a strategic planning committee (4.3%), most of the inpatients interviewed (87%) had a documented strategic plan; The management board was mostly involved in strategic planning ( Journal number 4 ∘ Aytakin Gasan Akhundova ∘ FESTIVALS AS CATALYSTS OF EVENT TOURISM: A THEORETICAL ANALYSIS Expanded Summary In modern society, in the conditions of global changes, festivals have become one of the most popular forms of socio-cultural activities. Festivals have become so popular that in the second half of the twentieth century the concept of "world festival movement" appeared. Being one of the types of event tourism, festivals have become an integral and important component of modern culture, providing unique opportunities for effective intercultural communication. These events promote tolerance, respect and cooperation between different communities. Festivals contribute to the active development of the economy of tourist regions. The large number of tourists coming to the festival contributes to the active development of local businesses, hotel industry, restaurants, souvenir stores and craft workshops. This creates new jobs, promotes active investment and overall economic growth in the region. They play an important role in popularizing a country, region, city or a parti Journal number 4 ∘ Avtandil Sulaberidze ∘ Joseph Archvadze ∘ Vladimer Sulaberidze ∘ Natalia Kopaleishvili ∘ From Baby Boom to Depopulation Summary Georgia has witnessed a sharp decline in fertility after obtaining independence, namely, since the beginning of the 1990s. During more than the last three decades the total fertility rate lagged behind the level necessary for the replacement level fertility within four years out of every five. If the mentioned rate had been on the level sufficient for the replacement level fertility (2.1) 272 thousand more children (more by 18.4%) than the actual figure would have been born in Georgia. In other words, the figure would have been substantially higher than the number of individuals currently living in the regions of Abkhazia and Tskhinvali. The main goal of the research is to manifest and analyze the demographic factors which influence the decline in fertility and formulate recommendations by juxtaposing two generations of reproductive age. In addition to the theoretical-methodological issues concerning fertility, the article also makes use of the official demographic dat Journal number 4 ∘ Tinatin Loladze ∘ Important Aspects of the Impact of Innovation on Unemployment Annotation. Today, successful modernization of the economy is achieved through competitive human capital, which is a significant factor of socio-economic development and competitiveness of the country's economy. It is no coincidence that at the beginning of the new millennium, many countries are moving to the "knowledge economy", where special importance is attached to human capital, which has a direct impact on economic indicators, activation of innovative processes and competitiveness. This paper reviews from a theoretical point of view the results of the works of leading economists covering the impact of innovation on employment at the micro and industry level. The effect of innovation on labor demand is not easy to study. Innovation and unemployment are two interrelated economic elements that have been discussed continuously in economic debates since the beginning of the 21st century. The conventional approach views innovation as a tool for economic transformation, resulting in e Journal number 4 ∘ Lasha Kelikhashvili ∘ Dynamics of Government Debt in the World and in Georgia and associated Challenges in the Context of Global Monetary Policy Tightening Expanded Summary The paper aims to evaluate current trends in public debt around the world, including Georgia. The paper assesses historical background of public debt and the main drivers of borrowing from past centuries to this time. Until the mid-17th century, the mobilization of credit resources by the government was mainly carried out to finance military operations (Stasavage, 2011). From the middle of the 17th century, as a result of the Peace of Westphalia, a relatively peaceful period has established between the European states, and from this period purpose mobilization of credit resources were significantly changed (Yun-Casalilla, O'Brien, 2015). This tendency, on the one hand was caused by the strengthening of state institutions, and on the other hand, by the increase in the demand for public goods due to growing urbanization. As a result, from this period instead of financing wars, public services (water pipelines, road infrastructure, education, etc.) were more actively fi Journal number 4 ∘ David Roinishvili ∘ Labor market failure induced by the education system in Georgia and Russia Expanded Summary The study examines the failure in the Georgian labor market caused by the failure of the education system. Additionally, it conducts a comparative analysis of the Russian labor market, thereby facilitating an examination of the labor market dynamics in both countries. The population of developing countries has observed the rapid economic growth and high standard of living in developed nations. Conversely, in economically underdeveloped countries, this indicator changes imperceptibly from generation to generation. The inability of certain countries, such as Georgia, to achieve high economic growth rates and improve the standard of living across generations prompts inquiry. One plausible explanation lies within the labor markets of these nations, specifically in its failures that contribute to an inefficient equilibrium and hinder the prevention of undesirable disequilibrium. Education is considered to hold a pivotal role in the labor market, and a breakdown in the ed Journal number 4 ∘ Irma Lang ∘ The Repercussions the Covid-19 pandemic had on the global economy and international trade flows Annotation.The paper analyzes the impact of Covid-19 on the global economy. Economies, financial systems and tightly interconnected supply chains have all come under pressure. The Covid-19 pandemic has generated a dramatic loss. The outbreak of the pandemic has had more of a significant negative impact on developing economies. All countries around the world are still trying to cope with the ongoing crisis created by the COVID-19 pandemic. The World Trade Organization reduced the global trade growth forecast for 2020-2021 and cited the coronavirus pandemic as the reason. The article shows that despite the restrictions caused by the pandemic, the world is in a recovery stage and many anti-crisis reforms have been implemented. Although the world trade system has improved in 2022, additional efforts are needed from all governments around the world.These efforts will be directed toward improving their economy and business environment.The three main elements that are vital to a successful tr