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Journal number 4 ∘ Ramaz Abesadze

Globalization and its influence on national economy and unemployment

Summary. The article deals with modern issues of globalization and its impact on the national economy. Globalization has objective as well as subjective features. That’s why the globalization includes unprecedented possibilities for development of human society as so as it threats of its existence. The positive results have been achieved only when any exposures of abuse are excluded and all decisions are received as a result of common consensus. The other trends of globalization might end with disaster. Globalization influences all sectors of national economy, including unemployment. In the article into detailed form are discussed the positive and negative sides of influence that globalization has on the national state and economy. The influence of globalization that affects to the unemployment depends on the circumstances that have been existing in the world and in national economies. The article analyzes the influence of globalization on unemployment in developed, devel
Journal number 4 ∘ Dahl MartinSylwia Gwoździewicz


Summary The development of education is an important goal of the policy of Poland and the European Union as a whole. Ever since the crucial character of this phenomenon was realized, many actions have been taken to improve the quality of education and increase innovation.The Act on Integrated Qualification System (ZSK) introduced a different order than hitherto- it did not create new institutions, but defined basic principles and standards of conduct. The Act defines roles and tasks of entities operating in the area of ​​qualifications as well as mutual relations between them. The essence of the regulations included in the Act on ZSK is the introduction of a set of coherent system solutions regarding qualifications granted outside the education system and higher education system as well as greater integration of various areas in which qualifications are given. Therefore, the main purpose of this study is to present the implementation of the ZSK in the education system in Poland.
Journal number 4 ∘ Murman TsartsidzeNatela LatsabidzeGiorgi Khmaladze Nikoloz Khmaladze


Expanded Summary In terms of modern globalization and Euro-integration, for the economic growth and development of the country is important to activate business, entrepreneurial activity, increase competitiveness of companies and ensure their financial sustainability and long term stability. The latter is directly dependent on the composition and structure of the enterprise assets, where a substantial share belongs to intangible assets and intellectual property objects and their rights. Determining the effectiveness of the economic benefits, which are adequate to the use of these assets (property), are required to evaluate their real market value, which is also mandatory for the country's current legislation, namely, the international standards of assessment (IVS 2017) and the International Financial Reporting Standards (IFRS-2017). It is obvious that there are very serious tasks in the management of modern companies regarding general assets and intangible assets, including periodic a
Journal number 4 ∘ Malkhaz Chikobava

Comparative analysis of Keynesian and monetarist theories

Expanded Summary In the 30s of the 20th century, the economies of Western countries had a historically unprecedented, deepest economic crisis, which led to the practical need to find means that would allow dynamic economic reproduction without deep fluctuations. The first who developed a paradigm of state regulation based on the theory of “regulated capitalism” was John Maynard Keynes. The main factor of economic development, according to Keynes, is “effective demand”, which consists of personal and industrial consumption. This choice of factors affecting the dynamics of economic development is not accidental. In the mid-thirties of the 20th century, Western economies tried to overcome the worst crisis. As is known, the economic crisis during capitalism is a crisis of overproduction of goods, capital and labor, that is, superiority of aggregate supply over aggregate demand. Criticizing the concept of the classical school that supply automatically generates de
Journal number 4 ∘ Denys TarasenkoAnna Chechel


Summary. The main trends and socio-ecological consequences of the "green economy" development in the European Union countries that could be considered as useful experience for Ukraine on the path to sustainable development have been defined, which can lead to significant structural changes in the system-forming sectors of the economy such as energy, construction, agriculture, etc. that affect the production apparatus updating, energy efficiency of production increase, stimulates the transition to alternative energy sources and reduces the greenhouse gas emissions level. Thus, it has been proved that the "green" infrastructure development provides for the economic development intensification in terms of supply and demand, while expanding employment and helping to reduce unemployment. Key words: sustainable development, "green economy", socio-economic consequences, European experience, economic policy, environmental policy. Target setting in general form. Link with scientific and pract
Journal number 4 ∘ Murman Kvaratskhelia

World innovative policy and Georgia

Resume The global transformation in the world depends on the rapid development of innovative processes. The innovative policies in Georgia are directly related to international tendencies. Innovation is directly related to such important topics as: Create a new or improved product, its marketing provision, to attract investments, create valuable intellectual property and act. In modern conditions, Japan is one of the prominent countries in terms of innovation. There was a new approach to Japanese management theories, which are based on the continuous updating of new technologies. Japan's experience can be a general orientation for developing countries, which should be taken into consideration. The level of innovation is a very important indicator. Its level of measurement is made by innovation index, which has many components. In this respect, the first five in the world looks like this: Switzerland, Sweden, United Arab Emirates, United States and Finland. Georgia as a developing co
Journal number 4 ∘ Tengiz Kavtaradze


Expanded Summary The innovative activity is the priority direction of the country's development, successful implementation of which is to overcome the economic backwardness and filling the market with different kinds of competitive products of its own production. In competitiveness research it is intended to elaborate the theoretical foundations of the clusters concept and their role in regional competitiveness. Regional competitiveness mechanism and the role of clusters in regional competitiveness are less studied in modern practice. Clusters should be reviewed according to various conceptual approaches: innovative process, social capital and economic geography. The geographical scale of the cluster may vary according to the city, region, country to according  neighboring countries. Cluster can be formed in different forms: Financial institutions engaged in manufacturing or serving of finished products and others. Cluster politics is usually done in the framework of the liberal
Journal number 4 ∘ Boris Gitolendia

Case Analysis of the Georgian Railway Transport Sector Interoperability and Intermodality with the European Systems

Sumary: This paper presents the results of research about the Case Analysis of the Georgian Railway Transport Sector Interoperability and Intermodality with the European Systems, Herein are listed challenges and problematic issues of compatibility of Georgian railway and it’s infrastructure and technical parameters to the EU standards and also some directives and regulations required for Georgian Railway Transport Sector in the context of “the EU – Georgia Association Agreement”. Also, article is giving a brief information about the “intermodal transportation” and the general importance of the role of rail transport in it. The article is prepared on the bases of the Young Scientist Grant of the Shota Rustaveli National Science Foundation (NYS-2016-41).  Keywords: Transportation, Transportation Infrastructure, Georgian Railways, EU Standards, Regional Developmant.  Introduction Due to the strategically important geographical location, Geo
Journal number 4 ∘ Giorgi Miqeladze

The multiplicative model of investment characterizing the deviations of the economy from the natural level and its empirical realization on the example of Georgian Economy

Summapy. The article deals with the multiplicative model of investment characterizing the deviations of the economy from the natural level, adopted by consolidating the Cobb-Douglas theory,  theory of the natural level of economy and the theory of investment. In addition, on the example of Georgian economy, article empirically tests the efficiency of the model and its validity. The article describes the model of investment derived from the synthesis of Cobb-Douglas theory, the natural level of economy and investment theory:            (1) By the multiplicative model of investment characterizing the deviations of the economy from the natural level is defined the link between the total number of investments, the amount of capital of the previous period, the GDP, the number of employees, the current and the lagging values ​​of the relative technological variable and the depreciation of capital. It is important to note that
Journal number 4 ∘ Nikoloz ChikhladzeNana Rusadze


Abstract The paper dwells on studying the relationship between the government size and economic growth using the mathematical and statistical tools for the post-Soviet countries of a certain group, as well as for Georgia for the period of 2003-2017, based on the World Bank data. In both cases, there have been revealed the the variation in the share of state expenditure in the analyzed period, which is explained by GDP growth rates in the model presented herein. Keywords: government size; effectiveness; correlation; GDP; expenditure.  Introduction Over the last half-century, the combined efforts of many governments have been focused on establishing an effective public service. Improvement of the system of public administration, as well as the use of the new management concepts and technologies were very much linked to the use of the effectiveness and performance indicators [Klishch N.,2007:35]. Of particular importance to effective public administration is to combine state man
Journal number 4 ∘ Irakli Gabriadze

Institutions and Development: The Experience of Pos-Soviet Union

Expanded summary The author wants to thank professor Iuri Ananiashvili for his helpful comments and suggestions. This work was supported by the Shota Rustaveli National Science Foundation (SRNSF) [grant number: PhD-F-17-137, Project Title: The Role of Institutions in Economic Growth and Development Models (Lessons from the Post-Soviet Union Countries)]. JEL codes: O43, P14, P20, P30 Keywords: Institutions, Economic Development, Post-Soviet Union Countries, Transition Economies In the paper, based on the experience of the Post-Soviet Union countries, the author analyses the importance of institutions for economic development. In particular, the role of formal and informal institutions is assessed. To test the relationship, cross section as well as panel data regressions methods are deployed. In addition, to account for endogeneity in the regressions, instrumental variable approach is used. The main result is that informal institutions are more important in determining the level of e
Journal number 4 ∘ Vakhtang Chkareuli

Government Action and Economic Freedom

Summary. Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion, so called the technique of the army and of the modern totalitarian state. The other is voluntary co-operation of individuals - the technique of the market place. As Milton Friedman, has mentioned in his public speeches, the government solution to a problem is usually as bad as the problem and very often makes a problem worse. In this paper, we are going to discuss the role of government to create a framework for the whole economy so that economic agents can benefit the most.  Key words.  Economic Freedom; Economic Freedom Index; Economic Growth; Government.  I. Introduction – Description of Economic Freedom A common objection to totalitarian societies is that they regard the end as justifying the means. Liberals disagree with this statement and argue that appropriate means are free discussion and voluntary c
Journal number 4 ∘ Erekle Zarandia

Development of potential revenues of Local Self-Government in Georgia (Case of Samegrelo and Upper Svaneti Region, Georgia)

Summary. My research topic is about a very important issue in Georgia, which can provoke the development of irreversible economic processes. Geographically, a village is the smallest administrational and municipal unit and logically, if the smallest territory is affluent, the state is correspondingly wealthy. Economic advancement in Georgia largely depends on the development of local democracy and self-government. The essence and the aim of the local self-government is to create possibilities for local citizens to resolve local problems independently. It will not be possible, if the rights, responsibilities and duties of the territorial and administrational units are not clearly distributed. The main flaw of the reforms carried out so far in Georgia in the process of local democracy formation is that the local authorities are largely depended on the central government and they are not focused on realizing the interests of the local community, which is theoretically the basis of thei
Journal number 4 ∘ Tatia Udesiani

The role of internal control system in the management of state procurement

Expanded summary Effective management of state procurement processes is one of the key challenges for budgetary organizations, because it provides a rational expenditure of funds, healthy competition based on cost and quality of services and goods, publicity and etc. In turn, internal control system plays an important role in the management of public procurement, allowing organizations reduce deficiencies and risks to a minimum. The processes related to state procurement are regulated by the Law on State Procurement, the purpose of which is to ensure the rational expenditure of the funds intended for public procurement, to produce healthy competition in the field of production of the necessary goods, servicesandconstruction work, ensuring public procurement publicity, etc. Therefore, efficient management of state procurement in budgetary organizations is a crucial issue for economically and efficiently disposes of the organization's financial resources. The internal control system p
Journal number 4 ∘ Lali Khikhadze

Modern Trends of Development of Economic and Cultural Globalism and Main Perspectives of Georgian Economy

Summary. Future of development of national economy and business sector of any country in the modern world is connected with irreversible processes of globalization. Internationalization, transnationalization and integration processes of economic life, liberalization of foreign trade policy have become essential factors determining current status of globalization. Along with this, globalization processes are mostly contradictory and positive outcomes of such processes are mainly felt by a group of postindustrial countries. They account for the largest part that is 70-80% of the use of the global resources of raw materials and energy sources while developing countries and countries in transition mostly represent just markets for sale of products (consuming countries) and cheap labor resources. Attitude of developed states towards the developing world should be construed only on principles of equal and mutually beneficial cooperation. Globalization as a multidimensional phenomenon i
Journal number 4 ∘ Luka Lazviashvili

The Analysis of Income Distribution in Georgia Based on Simon Kuznets Methodology

Expanded summary The research reported here is taken from my Master’s Thesis “Macroeconomic Policy of the Inclusive Economic Growth” which I successfully defended at Ivane Javakhishvili Tbilisi State University in July 2018. It’s the part of the third chapter of my thesis, compressed and refined for being published. (Special thanks to the Doctor of Economics, Professor and my thesis supervisor Mr. Nodar Khaduri who made a great contribution with his critical remarks and advices)  The major aim of the article is to analyse the income distribution in Georgia by Simon Kuznets methodology and to depict the final result on the Kuznets Curve. The Kuznets Curve is still actual in the modern economic theory. It reflects the concept of how economic growth affects the inequality[1] and, since there are not many enquiries about that subject and the Kuznets theory is still authentic looking at empirical data,[2] it remains as a major concept of the underlined connect
Journal number 4 ∘ Giorgi Morchiladze

Characteristics and Evolution of Innovative Process Models

Expanded Summary In modern World, because of desperate competition and globalization, any company needs the continuous care of improvement its product and business processes, thus it can achieve the success and maintain the existence in long-term period. Development of products and business-processes is always related to the innovation. Effective innovation management is quite difficult and complex, that is why it is necessary as a theoretical and empirical study. The aim of the research are: study of innovation management models, Characterization of them, explaining the causes of structural changes in the process of evolution of models which is important for the development of innovations management theory. In the 50s of the twentieth century, the leading economists believed that the innovative process had a linear and consistent character and included scientific findings, researches, engineering and productive actions, marketing, and after all of these process there was provided n
Journal number 4 ∘ Tsotne Zhghenti

Institutional development versus Economic development in Georgia

Summary. Institutional development is an actual topic as developed as developing parts of the world. Institutional change process is more sensitive for developing economies. Georgia is post-transition developing economy with low incomes. Twenty five years have completed after the collapse of the Soviet Union, but the economy of Georgia has not yet returned to the incomes level of the 90s. Besides successful institutional and economic reforms and years of high economic growth rates, GDP per capita in Georgia is lower than in other eastern European EU member countries. Post-Communist Georgia was characterized by both institutional and economic backwardness, while some post-Soviet economies have completed integration process into European economic and political structures. Keywords: Institutional development, Economic development, Transition. Introduction After the dissolution of the Soviet Union, institutional problems faced to the Georgian economy divide into three main groups: &bul