Journal number 2 ∘ Ramaz Abesadze ∘

Economic regress: essence, causes and sources of its or

Summary The main goal of the paper is to convey the essence, causes and sources of the "economic regress", an important event practically unstudied in the economic literature, to define the functions of the government as the "helmsman" of the economy and the reasons for the manifestation of economic regression in the economy of Georgia. To achieve this goal, the concept of "consolidated economy" is introduced and its essence is revealed. The research used methods of systematic analysis and abstraction.We associate economic regress, as well as economic development, with qualitative changes in the economy. Economic development is the transition of the economy to a new, qualitatively more perfect state, and economic regress is the transition of the economy to a new, qualitatively worse state. A consolidated economy is such an economy on which the combination of factors contributes to the improvement of the elements of the economic system and the interdependence between them, that is, the

Journal number 2 ∘ Nunu Ovsyannikova ∘ Maia Mikaia ∘

Georgias Occupational Safety Policy and European integration

Expanded Summary The orientation of the labour relations regulation policy in Georgia is related to the goal of ensuring democratic reformation on the way to European integration and is proceeded in several main directions such as the establishment of conceptual, legislative and institutional mechanisms of labor policy, consistent monitoring of not only the fulfillment but also the process of fulfillment of the obligations defined by the association agreement, the labor directives of the European Union, the provisions of the social charter and the conventions of the International Labor Organization, which in turn is seen as a guarantee of the effectiveness of the European integration process. It should be noted that the legal base of the European integration process of Georgia includes the entire legislative array. A turning point in the processes of establishing legislative mechanisms for Occupational Safetyregulation is the "Association Agreement between Georgia on the one hand and

Journal number 2 ∘ Nikoloz Ostapenko ∘

Income inequality and household consumption

Expanded Summary The structural analysis of households is frequently overlooked in the formulation of state policies, which hinders the formation of an adequate vision. Studying the behavior of representative agents does not enable the examination of the principles governing the actual operation of policy transmission mechanisms. The reason for this is that various groups of households interact with each other, influencing the economy's sensitivity to different policy instruments. In such circumstances, the macroeconomic policies implemented by the state can lead to income redistribution. A fundamental question arises regarding the homogeneity of indicators of consumer behavior, such as consumption elasticities from different types of income, intertemporal substitution elasticities of consumption, average propensities to save, and various transmission channels. This paper examines the reasons for differences in intertemporal substitution elasticities of consumption at various in

Journal number 2 ∘ Asif Mirlazim Mustafayev ∘ Tariyel Musallim Qurbanov ∘ Babayev Turgan Khalil ∘

Prospects for the development of the green economy in Azerbaijan

Annotation.The presented article is devoted to some problems related to the provision of green economy in Azerbaijan and ways to solve them. The article assessed the potential opportunities of Azerbaijan and noted state measures in this direction. It was especially noted that by hosting COP2024 at the end of 29, Azerbaijan once again confirmed the seriousness of the work done in this direction. In addition, the article emphasizes that the economic and environmental potential of the liberated territories of Azerbaijan will help to quickly achieve the country's goals for 2030. This is evidenced by the restoration work carried out in this direction. Key words: green economy, environmental risks, renewable energy, economic development, sustainable development, COP29, etc. İntroduction A green economy is a concept of economic development aimed at improving human well-being and social equality, while significantly reducing environmental risks and environmental deficiencies. G

Journal number 2 ∘ Givi Lemonjava ∘

Company Financial Modeling and Forecasting

Expanded Summary Any kind of business activity depends on finances, which needs proper management. The function of financial management is to obtain the necessary funds and use them effectively. Financial economics is based on macro and micro principles of economics. Investment decisions take into account the existing macro and micro environment. The accounting system creates an information base that helps financial managers make decisions. These two areas are closely related. Financial management methods use mathematics and mathstats called econometrics. The discount factor, time value of money, cost of capital(WACC), capital structure theory, dividend theories, ratio analysis and working capital analysis are widely use in financial management. Any kind of business activity depends on finances, which ere important component of company management is financial management. The financial model processes data with high accuracy and quickly transforms it into financial information.

Journal number 2 ∘ Revaz Javakhishvili ∘

Georgia in the middle corridor: reality, challenges, prospects

Expanded Summary Historically, communication between the countries of Europe and Asia was carried out through Georgia. It was along this road that China began to supply its high-quality silk to European countries, which is why this route was called the “Great Silk Road.” The most important historical events at the turn of the 20th and 21st centuries once again put on the agenda the need to revive the ancient Great Silk Road. In 1990, at an international conference in Vladivostok, the idea was voiced to turn this old historical road into a modern transit and transport corridor, the implementation of which became possible only after the collapse of the Soviet Union. Subsequently, large-scale regional technical assistance programs (“TRACECA”) were created within the framework of Tacis, within the framework of which in 1995-2010. A number of technical assistance projects were implemented, which ensured institutional development and reform of the management

Journal number 2 ∘ Shota Veshapidze ∘ Sofiko Kitashvili ∘

Georgias European integration perspective

Abstract The purpose of the research of this work is to examine the long-term economic relations between the European Union and Georgia, to reveal the economic potential of Georgia and the priority directions that the country has on the way to European integration. For this purpose, the article analyzes the past experiences of some EU member states, from candidacy to the present day. It shows the prospects for Georgia's economic development and the country's strategic goal - ensuring freedom, stability, and development of Georgia, safeguarding human, family security, health, social status, dignified ageing, and protecting all human rights. The paper analyzes several priority directions of the European Union and its long-term perspectives, the historical aspects of cooperation between Georgia and the EU, and Georgia's proactive steps to deepen integration with the EU. It also analyzes the challenges Georgia faces in various fields, such as innovative development and the development of

Journal number 2 ∘ Tengiz Verulava ∘

The role of doctors in the formation of demand for medical services

Expanded Summary In the normal market, the consumer has prior information and can choose according to his taste, from whom, where, and at what prices to buy the desired goods. It is completely independent of the seller. When buying goods, the consumer takes into account his income and tries to use it to the maximum benefit, that is, he appears as a rational buyer. However, in some cases (eg, car or plumbing repair) the consumer is not fully informed about this or that product and it is difficult to make a choice. At such times, people turn to informed agents to help them make choices. The situation is even more difficult in the health sector. The market of medical services is characterized by a high degree of uncertainty and information asymmetry. The customer does not always have the opportunity to decide on the amount of medical services and treatment methods needed. The decisive role in determining the scope of medical services is assigned to the doctor, not the patient. The docto

Journal number 2 ∘ Nata Davlasheridze ∘

Nobel laureates in economics Paul Milgrom and Elinor Ostrom on the role of water resources as one of the most important aspects of strengthening the countrys economy

Expanded Summary The blue economy implies all economic activities related to the oceans, seas and coasts. Water is actually «liquid gold» – the most important resource on Earth, without which people will not be able to live or develop many types of business. Over the past 40 years, the world's water use has increased by 1% every year, and it will continue to grow until 2050. However, the population of some low- and middle-income countries are already facing water shortages, and over the years they will become more and more. According to a new report prepared by participants and partners of the UN–Water mechanism and published by UNESCO, today 2.2 billion people still live without access to clean drinking water, and 3.5 billion do not have access to safe sanitation. Thus, the UN goal of ensuring such access for all by 2030 is far from being achieved, and there is reason to fear that this inequality may continue to grow. Nobel laureates in economics

Journal number 2 ∘ Lia Dvalishvili ∘

Ambient air quality and pollution in Georgia

Abstract: High quality of life depends on the high quality of air. The increase in air pollutant emissions is directly related to the deterioration of air quality, resulting in high data on the loss of mortality and damage to the quality of life. Air pollution threatens sustainable development because it simultaneously affects various social, ecological, and economic criteria. Like the modern world, Georgia faces many environmental problems and challenges in the background of development and technological progress. Emissions are the leading cause of air pollution threats across the country. Managing the problem requires the best environmental management skills. The policies, reforms, and sustainable initiatives implemented by international organizations and the national government are the cornerstone for the country to become better, cleaner, and greener. Keywords:air quality, waste management, emission, circular economy. Introduction The 21st century can be f

Journal number 2 ∘ Gigi Elizbarashvili ∘

ON THE ESSENCE OF BALANCED DEVELOPMENT OF GEORGIA AND ITSEVALUATION INDICATORS

Expanded Summary The purpose of the article is to analyze the current situation in Georgia in terms of commensurate economic development, for which in the article are represented the indicators of the assessment of the country's commensurate economic development worked out by the author. The obtained results revealed a significant imbalance between the development levels of the capital city of Georgia and the regions. Also, we were given the opportunity to determine which region is relatively developed and which of them is in the most difficult economic situation. The article emphasizes the factors contributing to the incommensurate economic development of the country and the severe socio-economic consequences that are the results of the mentioned imbalance. Also, the means of prevention of the incommensurate economic development of the country and minimizing them are analyzed. Relevant conclusions and recommendations are represented at the end of the article. The main concern

Journal number 2 ∘ Levan kikilashvili ∘

Economic development of Georgia: in terms of green technological and innovative business models

Abstract: This paper examines the economic development of Georgia through the integration of green technologies and innovative business models. Situated in the Caucasus region, Georgia strategically leverages its rich natural resources to promote sustainable development. The country's energy policy prominently features renewable energy sources, including hydropower, wind, and solar energy, which play a crucial role in enhancing energy security and minimizing greenhouse gas emissions. In agriculture, Georgia leads in sustainable practices such as organic farming and precision agriculture, which increase productivity while maintaining environmental integrity and ensuring long-term food security. The manufacturing sector is also evolving towards green practices, emphasizing energy efficiency, waste reduction, and the adoption of circular economy principles. These advancements are supported by robust government policies, including subsidies, tax incentives, and grants for green projects,

Journal number 2 ∘ Givi Veshapeli ∘

Polarization of the Georgian Labor Market

Expanded Summary Polarization of the labor market is a relevant topic in Europe and the US. It refers to the growing disparity between high-skilled, high-paying jobs and low-skilled, low-paying jobs, with a decline in middle-skilled jobs. Numerous studies are being conducted to address this process and to better understand its complexity. However, it should be noted that there are few studies on labor market polarization in Georgia. The study analyzes labor market polarization in Georgia from 2017 to 2022. The research is based on data obtained from the National Statistics Office of Georgia. The analysis of statistical data reveals the level of labor market polarization in Georgia. Based on the results of the research, it is confirmed that labor market polarization is revealed in Georgia. Since the early 2000s, it has been predicted that technological advancement and computerization would lead to significant changes in the labor market. The main idea of this concept was that this pr

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 2 ∘ Ramaz Abesadze ∘ Economic regress: essence, causes and sources of its or Summary The main goal of the paper is to convey the essence, causes and sources of the "economic regress", an important event practically unstudied in the economic literature, to define the functions of the government as the "helmsman" of the economy and the reasons for the manifestation of economic regression in the economy of Georgia. To achieve this goal, the concept of "consolidated economy" is introduced and its essence is revealed. The research used methods of systematic analysis and abstraction.We associate economic regress, as well as economic development, with qualitative changes in the economy. Economic development is the transition of the economy to a new, qualitatively more perfect state, and economic regress is the transition of the economy to a new, qualitatively worse state. A consolidated economy is such an economy on which the combination of factors contributes to the improvement of the elements of the economic system and the interdependence between them, that is, the Journal number 2 ∘ Nunu Ovsyannikova ∘ Maia Mikaia ∘ Georgias Occupational Safety Policy and European integration Expanded Summary The orientation of the labour relations regulation policy in Georgia is related to the goal of ensuring democratic reformation on the way to European integration and is proceeded in several main directions such as the establishment of conceptual, legislative and institutional mechanisms of labor policy, consistent monitoring of not only the fulfillment but also the process of fulfillment of the obligations defined by the association agreement, the labor directives of the European Union, the provisions of the social charter and the conventions of the International Labor Organization, which in turn is seen as a guarantee of the effectiveness of the European integration process. It should be noted that the legal base of the European integration process of Georgia includes the entire legislative array. A turning point in the processes of establishing legislative mechanisms for Occupational Safetyregulation is the "Association Agreement between Georgia on the one hand and Journal number 2 ∘ Nikoloz Ostapenko ∘ Income inequality and household consumption Expanded Summary The structural analysis of households is frequently overlooked in the formulation of state policies, which hinders the formation of an adequate vision. Studying the behavior of representative agents does not enable the examination of the principles governing the actual operation of policy transmission mechanisms. The reason for this is that various groups of households interact with each other, influencing the economy's sensitivity to different policy instruments. In such circumstances, the macroeconomic policies implemented by the state can lead to income redistribution. A fundamental question arises regarding the homogeneity of indicators of consumer behavior, such as consumption elasticities from different types of income, intertemporal substitution elasticities of consumption, average propensities to save, and various transmission channels. This paper examines the reasons for differences in intertemporal substitution elasticities of consumption at various in Journal number 2 ∘ Asif Mirlazim Mustafayev ∘ Tariyel Musallim Qurbanov ∘ Babayev Turgan Khalil ∘ Prospects for the development of the green economy in Azerbaijan Annotation.The presented article is devoted to some problems related to the provision of green economy in Azerbaijan and ways to solve them. The article assessed the potential opportunities of Azerbaijan and noted state measures in this direction. It was especially noted that by hosting COP2024 at the end of 29, Azerbaijan once again confirmed the seriousness of the work done in this direction. In addition, the article emphasizes that the economic and environmental potential of the liberated territories of Azerbaijan will help to quickly achieve the country's goals for 2030. This is evidenced by the restoration work carried out in this direction. Key words: green economy, environmental risks, renewable energy, economic development, sustainable development, COP29, etc. İntroduction A green economy is a concept of economic development aimed at improving human well-being and social equality, while significantly reducing environmental risks and environmental deficiencies. G Journal number 2 ∘ Givi Lemonjava ∘ Company Financial Modeling and Forecasting Expanded Summary Any kind of business activity depends on finances, which needs proper management. The function of financial management is to obtain the necessary funds and use them effectively. Financial economics is based on macro and micro principles of economics. Investment decisions take into account the existing macro and micro environment. The accounting system creates an information base that helps financial managers make decisions. These two areas are closely related. Financial management methods use mathematics and mathstats called econometrics. The discount factor, time value of money, cost of capital(WACC), capital structure theory, dividend theories, ratio analysis and working capital analysis are widely use in financial management. Any kind of business activity depends on finances, which ere important component of company management is financial management. The financial model processes data with high accuracy and quickly transforms it into financial information. Journal number 2 ∘ Revaz Javakhishvili ∘ Georgia in the middle corridor: reality, challenges, prospects Expanded Summary Historically, communication between the countries of Europe and Asia was carried out through Georgia. It was along this road that China began to supply its high-quality silk to European countries, which is why this route was called the “Great Silk Road.” The most important historical events at the turn of the 20th and 21st centuries once again put on the agenda the need to revive the ancient Great Silk Road. In 1990, at an international conference in Vladivostok, the idea was voiced to turn this old historical road into a modern transit and transport corridor, the implementation of which became possible only after the collapse of the Soviet Union. Subsequently, large-scale regional technical assistance programs (“TRACECA”) were created within the framework of Tacis, within the framework of which in 1995-2010. A number of technical assistance projects were implemented, which ensured institutional development and reform of the management Journal number 2 ∘ Shota Veshapidze ∘ Sofiko Kitashvili ∘ Georgias European integration perspective Abstract The purpose of the research of this work is to examine the long-term economic relations between the European Union and Georgia, to reveal the economic potential of Georgia and the priority directions that the country has on the way to European integration. For this purpose, the article analyzes the past experiences of some EU member states, from candidacy to the present day. It shows the prospects for Georgia's economic development and the country's strategic goal - ensuring freedom, stability, and development of Georgia, safeguarding human, family security, health, social status, dignified ageing, and protecting all human rights. The paper analyzes several priority directions of the European Union and its long-term perspectives, the historical aspects of cooperation between Georgia and the EU, and Georgia's proactive steps to deepen integration with the EU. It also analyzes the challenges Georgia faces in various fields, such as innovative development and the development of Journal number 2 ∘ Tengiz Verulava ∘ The role of doctors in the formation of demand for medical services Expanded Summary In the normal market, the consumer has prior information and can choose according to his taste, from whom, where, and at what prices to buy the desired goods. It is completely independent of the seller. When buying goods, the consumer takes into account his income and tries to use it to the maximum benefit, that is, he appears as a rational buyer. However, in some cases (eg, car or plumbing repair) the consumer is not fully informed about this or that product and it is difficult to make a choice. At such times, people turn to informed agents to help them make choices. The situation is even more difficult in the health sector. The market of medical services is characterized by a high degree of uncertainty and information asymmetry. The customer does not always have the opportunity to decide on the amount of medical services and treatment methods needed. The decisive role in determining the scope of medical services is assigned to the doctor, not the patient. The docto Journal number 2 ∘ Nata Davlasheridze ∘ Nobel laureates in economics Paul Milgrom and Elinor Ostrom on the role of water resources as one of the most important aspects of strengthening the countrys economy Expanded Summary The blue economy implies all economic activities related to the oceans, seas and coasts. Water is actually «liquid gold» – the most important resource on Earth, without which people will not be able to live or develop many types of business. Over the past 40 years, the world's water use has increased by 1% every year, and it will continue to grow until 2050. However, the population of some low- and middle-income countries are already facing water shortages, and over the years they will become more and more. According to a new report prepared by participants and partners of the UN–Water mechanism and published by UNESCO, today 2.2 billion people still live without access to clean drinking water, and 3.5 billion do not have access to safe sanitation. Thus, the UN goal of ensuring such access for all by 2030 is far from being achieved, and there is reason to fear that this inequality may continue to grow. Nobel laureates in economics Journal number 2 ∘ Lia Dvalishvili ∘ Ambient air quality and pollution in Georgia Abstract: High quality of life depends on the high quality of air. The increase in air pollutant emissions is directly related to the deterioration of air quality, resulting in high data on the loss of mortality and damage to the quality of life. Air pollution threatens sustainable development because it simultaneously affects various social, ecological, and economic criteria. Like the modern world, Georgia faces many environmental problems and challenges in the background of development and technological progress. Emissions are the leading cause of air pollution threats across the country. Managing the problem requires the best environmental management skills. The policies, reforms, and sustainable initiatives implemented by international organizations and the national government are the cornerstone for the country to become better, cleaner, and greener. Keywords:air quality, waste management, emission, circular economy. Introduction The 21st century can be f Journal number 2 ∘ Gigi Elizbarashvili ∘ ON THE ESSENCE OF BALANCED DEVELOPMENT OF GEORGIA AND ITSEVALUATION INDICATORS Expanded Summary The purpose of the article is to analyze the current situation in Georgia in terms of commensurate economic development, for which in the article are represented the indicators of the assessment of the country's commensurate economic development worked out by the author. The obtained results revealed a significant imbalance between the development levels of the capital city of Georgia and the regions. Also, we were given the opportunity to determine which region is relatively developed and which of them is in the most difficult economic situation. The article emphasizes the factors contributing to the incommensurate economic development of the country and the severe socio-economic consequences that are the results of the mentioned imbalance. Also, the means of prevention of the incommensurate economic development of the country and minimizing them are analyzed. Relevant conclusions and recommendations are represented at the end of the article. The main concern Journal number 2 ∘ Levan kikilashvili ∘ Economic development of Georgia: in terms of green technological and innovative business models Abstract: This paper examines the economic development of Georgia through the integration of green technologies and innovative business models. Situated in the Caucasus region, Georgia strategically leverages its rich natural resources to promote sustainable development. The country's energy policy prominently features renewable energy sources, including hydropower, wind, and solar energy, which play a crucial role in enhancing energy security and minimizing greenhouse gas emissions. In agriculture, Georgia leads in sustainable practices such as organic farming and precision agriculture, which increase productivity while maintaining environmental integrity and ensuring long-term food security. The manufacturing sector is also evolving towards green practices, emphasizing energy efficiency, waste reduction, and the adoption of circular economy principles. These advancements are supported by robust government policies, including subsidies, tax incentives, and grants for green projects, Journal number 2 ∘ Givi Veshapeli ∘ Polarization of the Georgian Labor Market Expanded Summary Polarization of the labor market is a relevant topic in Europe and the US. It refers to the growing disparity between high-skilled, high-paying jobs and low-skilled, low-paying jobs, with a decline in middle-skilled jobs. Numerous studies are being conducted to address this process and to better understand its complexity. However, it should be noted that there are few studies on labor market polarization in Georgia. The study analyzes labor market polarization in Georgia from 2017 to 2022. The research is based on data obtained from the National Statistics Office of Georgia. The analysis of statistical data reveals the level of labor market polarization in Georgia. Based on the results of the research, it is confirmed that labor market polarization is revealed in Georgia. Since the early 2000s, it has been predicted that technological advancement and computerization would lead to significant changes in the labor market. The main idea of this concept was that this pr