Journal number 4 ∘ ∘

Improvement of the Human Resources Management in State Service

The article discusses topical issues of the improvement of human resource management in public service. In its introductory part the focus is on the particular importance of the improvement of human resource management in the state governing bodies at today’s stage of societal development. The article describes the current state of human resources management in Georgian state agencies and provides its critical analysis. In the concluding part of the article, on the basis of analysis of problem research, the author’s opinions are presented on the deficiencies in personnel management in the field of human activity and, therefore, the specific measures are set out to minimize them. Keywords: Human Resources; Personnel; Management of Human Resources Staff Service; Division of Staff; Status of Personnel Service. JEL Codes: M50, M54, M59 სახელმწიფო სამსახურში ადამიანური რესურსების მარ

Journal number 4 ∘ Kakha Ketsbaia ∘

Sociological Implications of Virtual-Consumer Society

Postmodern transformations of man and society set new challenges to modern sociology which failed to answer them. Therefore it became necessary to form an alternative sociology. Postmodern discourse questions existence of modern sociology not as epistemology but as a theory of society in general. As Baudrillard shows modern sociology has exhausted itself, even more, nowadays it has no subject to study. Modern sociology was oriented to totality and it is unacceptable for postmodern sociology. Total society underwent total deconstruction. Besides, in classical sociology economics was the factor determining typology of society. Postmodern sociology rejects such a position. According to postmodern sociology economics in a traditional sense of the word is replaced by trans and virtual economics. If the subject matter of modern sociology was modern society and sociology came into existence in result of analysis of such type of society, today we see that modern society has turned into t

Journal number 4 ∘ Tinatin Medzmariashvili ∘

The EU Standards and Legal Regulation of State Purchases in Georgia

Regulatory legislation performs one of the main roles in the state procurement sphere, because it is important to ensure a fair and non-discriminatory environment, proportionate and equal approach towards the private sector. In addition, especially relevant issues are implemented or will be implemented in Deep and Comprehensive Free Trade Agreement (DCFTA) between Georgia and EU in the state procurement legislative database, while today on the agenda stands compliance with the legislative base of Georgia’s state procurement with the active legislation of the EU. Keywords: State Procurement; Legislative Regulation; EU Standards; Association Agreement. JEL Codes: H57, H59 ევროკავშირის სტანდარტები და სახელმწიფო შესყიდვების სამართლებრივი რეგულირება საქართველოში სახელმწიფო შესყიდვ

Journal number 4 ∘ Gia Beridze ∘

Transfer Pricing Challenges in Georgia

This article is the first try about Transfer pricing challenges in Georgia. The article deals with the importance of a tax-economical issue of Transfer pricing, as well as analysis of Transfer pricing issues and risks in Georgia, current problems, challenges and ways to deal with them. Keywords: Transfer Pricing in Georgia; International Taxation; Tax Changes in Georgia. სატრანსფერო ფასწარმოქმნის გამოწვევები საქართველოში საქართველოში სატრანსფერო ფასწარმოქმნის პრობლემებთან დაკავშირებით წინამდებარე სტატია პირველია. მასში განხილულია სატრანსფერო ფასწარმოქმნის როგორც საგადასახადო-ეკონომიკური ს

Journal number 4 ∘ Nika Chitishvili ∘

“Dutch Disease” – Features of the Norwegian Model

The given article below analyzes Dutch Disease as a significant hampering issue on the way of economic development. This article aims to define Dutch Disease and demonstrate its problematic essence and at the same time to suggest solutions for this challenging matter. We scrutinize Dutch Disease and the ways for overcoming it, instruments, which enable decision-makers to pursue economic policy in a such direction, when short-term economic booms won’t be able to hinder economic development. Keywords: Dutch Disease; Norwegian Model; Economic Security; Economic Boom. „ჰოლანდიური დაავადება“ – ნორვეგიული მოდელის თავისებურებანი ნაშრომში განხილულია „ჰოლანდიური დაავადება“, როგორც ეკონომიკის წარმატებით ფუნქციონი�

Journal number 4 ∘ Simon Gelashvili ∘

New rules of Statistical Imputation for Interdependent Economic Time Series

The article describes the technological scheme of the production of „statistical finished products” and the prerequisites for implementation of imputation, as well as the imputation methods known to date and new ones. According to the official statistical information, correlation coefficient between households’ income and expenses is calculated (in the case of Georgia’s). On the basis of time series, the practical application of the new „triangle method” of the imputation is analyzed; its results are compared with the calculations made by various methods, which clearly revealed the high level of reliability of the new method developed by us. Keywords: Imputation; Time Series; Correlation; Arithmetic Average; Forecasting. ურთიერთდამოკიდებული ეკონომიკური დროითი მწკრივების სტატისტიკური იმპუტაციის ახალი

Journal number 4 ∘ Tengiz Verulava ∘

Medical Market: Information and Incentives

The article reviews the characteristics of the medical market. The difference between the medical market and the usual market is substantiated. The main signs of the medical market are: risks and uncertainty, incomplete information (asymmetry of information), market power, limited competition, external effects, public good. If health and health care equity are desirable features, there might be need for government intervention because these qualities are not easily attained through the market. Government involvement in health care is often necessary because there are many market failures in health care and the market is not always able to correct such failures. Keywords: Health Economics; Ideal Market; Market Failure; Perfect Competition; Limited competition; Market Forces; Equity; Economic Efficiency. სამედიცინო ბაზარი: არსი, სპეციფიკა, სტიმულები სტატიაში მიმოხილულია �

Journal number 4 ∘ Dimitri Javakhadze ∘

Development of Electronic Services in Georgia

Functioning in „good governance“plays a crucial role for business, where the rule of law is guaranteed, the right to property is protected, the transparent and responsible attitude of governments towards business is felt. Due to the main goals of business, save time and financial resources, decrease administrative pressure, simplify communication with partners, more efficiently manage self-sustaining in the existing competitive world, without the introduction of electronic services in compliance with international standards, it is unacceptable. The article reviews important electronic services for business and their development opportunities. Keywords: El-Services; El-Commerce; El-Management; El-Platforms JEL Codes: L80, L81, L86, M15 ელექტრონული სერვისების განვითარება საქართველოში ახალი ათასწლეულის დასაწყისში სულ უფ

Journal number 4 ∘ Sopio Bakuridze ∘

Peculiarities of Integration Relationships on the Regional Medical Services Market

Current transformational processes over the last three decades in the country, which took place in the social-economic sphere of the state, caused fundamental changes in the field of medical service too. Requirements of market-economic changes, like various fields, in the field of medical service it has caused the need for searching innovative ways of solving and developing problems. Besides the state medical institution existing in the non-market economic system, which has free medical care for the population, appeared private medical institutions, which have moved to paid services. However, in the modern stage in the, market economy system it is not still perfect social and economic relations between the private and state sectors of medical area. In the conditions of a particularly complicated socio-economic background, when the rate of service growth is low, the country’s budget is scarce, prices are high including the price of medicines, the index of unemployment is high to

Journal number 4 ∘ Nino Zurashvili ∘

Urbanization Processes in the Modern World

The article discusses urbanization process in the modern world. What factors drive the growth of urbanization level throughout the world? What factors affect the process of urbanization in Europe? The article discusses how the big cities of Europe respond to this challenge. The article suggests the ways of urban development without ecological damage. The World Bank directives and recommendations for urbanization process are offered. The article discusses the urbanization processes in Georgia. What are the positive and negative sides of urbanization in Georgia? Keywords: Urbanization; Cities; Planning of Cities; Ecology; Infrastructure. JEL Codes: O18, R23, J11 ურბანიზაციის პროცესები თანამედროვე მსოფლიოში წინამდებარე სტატიის მიზანია თანამედროვე მსოფლიოში მიმდინარე ურბანიზაც�

Journal number 4 ∘ Alexander Vasilyev ∘

Comparative Analysis of the Real Estate Market in Tbilisi

The study deals with the determination of the dynamics of prices in the sector of residential spaces of the real estate in 2007-2016 in Tbilisi, separation of business cycles, evaluation of the investment climate through short-term forecast within the third and fourth quarters of 2016 and identification of determining factors in respect of price changes. Keywords: Real Estate; Business Cycles; Factor Analysis; Primary and Secondary Real Estate Markets. JEL Codes: E31, E32, R31 გაყიდვებზე მოქმედი ფაქტორების ანალიზი თბილისის უძრავი ქონების ბაზრის მაგალითზე სტატია ეძღვნება თბილისის საბინაო ბაზრის სექტორში მიმდინარე ტრანზაქციების ანალიზსს; საბინაო ბაზრის გაყიდვე�

Journal number 4 ∘ Giorgi Shikhashvili ∘

Current Paradigms of Self-management: Synergic Understanding of Personal Health Management

Nowadays, it is exceptionally important to research actual issues of selfmanagement, in particular, the synergic understanding of personal health management. For this purpose the article discusses the following issues: a synergic approach to human understanding; The underlying synergic paradigms of self-management; Biblicalsynergic understanding of management; Christian synergic paradigms of public and personal health management; Medical teaching according to the Bible; General and practical aspects of personal health management with specific individual treatment methods (treatment with juices, healthy foods, hunger, physical activity, etc.). The article contains the author’s visions, paradigms and concrete opinions in the direction of personal health management. Keywords: Synergic Paradigms of Self-Management; Medical Teaching According to the Bible; Synergic Understanding of Personal Health Management; Individual Treatment Methods. თვითმენეჯმენტ�

Journal number 4 ∘ David Nizharadze ∘

Fundamental Concepts and Models of Innovation Management

The article discusses about the fundamental concepts of innovative management, it’s types, theoretical and practical significance. Based on different scientists’ points of views, examples of companies, the statistical analysis is assessed features of the innovative process management, dynamics of the state’s financial support, and modern models of innovation management and in the conclusion there is presented the purpose of innovative mmanagement for innovative firms to achieve competitive advantage in local or international markets. Keywords: Innovation; Innovation management; Static Models of Innovation Management; Dynamic Models of Innovation Management. JEL Codes: O30, O31, O32 ინოვაციების მართვის თავისებურებები თანამედროვე ბიზნესში თანამედროვე ბიზნეს-სივრცეში, ინოვაციური მენეჯმ

Journal number 4 ∘ Naira Gvedashvili ∘

For Improving the Introduction and Management of Innovations in the Georgian Health Care Sphere

In the article, on the basis of critical analysis of individual researchers of the introduction and management of innovations and innovative processes existing nowadays in the sphere of health care there are set out some of the author’s opinions about the improvement of the introduction of innovations and management. At the contemporary stage innovations are generally a factor of successful functioning of all organizations as well as health care institutions: innovations create jobs, raise the level of medical care and ensure sustainable development of the sector. Keywords: Innovations in Health Care; Quality of Service; Innovative Managers; EU Experience. JEL Codes: I10, I11, I18 საქართველოს ჯანდაცვის სფეროში ინოვაციების დანერგვისა და მართვის სრულყოფისათვის სტატიაში ინოვაციების დანერგ

Economics and Business Referential and Reviewed International Scientific-Analytical Journal of Ivane Javakhishvili Tbilisi State University, Faculty of Economics and Business

ISSN 1987-5789 ESSN 2587-5426 doi 10.52340	Journal number 4 ∘ ∘ Improvement of the Human Resources Management in State Service The article discusses topical issues of the improvement of human resource management in public service. In its introductory part the focus is on the particular importance of the improvement of human resource management in the state governing bodies at today’s stage of societal development. The article describes the current state of human resources management in Georgian state agencies and provides its critical analysis. In the concluding part of the article, on the basis of analysis of problem research, the author’s opinions are presented on the deficiencies in personnel management in the field of human activity and, therefore, the specific measures are set out to minimize them. Keywords: Human Resources; Personnel; Management of Human Resources Staff Service; Division of Staff; Status of Personnel Service. JEL Codes: M50, M54, M59 სახელმწიფო სამსახურში ადამიანური რესურსების მარ Journal number 4 ∘ Kakha Ketsbaia ∘ Sociological Implications of Virtual-Consumer Society Postmodern transformations of man and society set new challenges to modern sociology which failed to answer them. Therefore it became necessary to form an alternative sociology. Postmodern discourse questions existence of modern sociology not as epistemology but as a theory of society in general. As Baudrillard shows modern sociology has exhausted itself, even more, nowadays it has no subject to study. Modern sociology was oriented to totality and it is unacceptable for postmodern sociology. Total society underwent total deconstruction. Besides, in classical sociology economics was the factor determining typology of society. Postmodern sociology rejects such a position. According to postmodern sociology economics in a traditional sense of the word is replaced by trans and virtual economics. If the subject matter of modern sociology was modern society and sociology came into existence in result of analysis of such type of society, today we see that modern society has turned into t Journal number 4 ∘ Tinatin Medzmariashvili ∘ The EU Standards and Legal Regulation of State Purchases in Georgia Regulatory legislation performs one of the main roles in the state procurement sphere, because it is important to ensure a fair and non-discriminatory environment, proportionate and equal approach towards the private sector. In addition, especially relevant issues are implemented or will be implemented in Deep and Comprehensive Free Trade Agreement (DCFTA) between Georgia and EU in the state procurement legislative database, while today on the agenda stands compliance with the legislative base of Georgia’s state procurement with the active legislation of the EU. Keywords: State Procurement; Legislative Regulation; EU Standards; Association Agreement. JEL Codes: H57, H59 ევროკავშირის სტანდარტები და სახელმწიფო შესყიდვების სამართლებრივი რეგულირება საქართველოში სახელმწიფო შესყიდვ Journal number 4 ∘ Gia Beridze ∘ Transfer Pricing Challenges in Georgia This article is the first try about Transfer pricing challenges in Georgia. The article deals with the importance of a tax-economical issue of Transfer pricing, as well as analysis of Transfer pricing issues and risks in Georgia, current problems, challenges and ways to deal with them. Keywords: Transfer Pricing in Georgia; International Taxation; Tax Changes in Georgia. სატრანსფერო ფასწარმოქმნის გამოწვევები საქართველოში საქართველოში სატრანსფერო ფასწარმოქმნის პრობლემებთან დაკავშირებით წინამდებარე სტატია პირველია. მასში განხილულია სატრანსფერო ფასწარმოქმნის როგორც საგადასახადო-ეკონომიკური ს Journal number 4 ∘ Nika Chitishvili ∘ “Dutch Disease” – Features of the Norwegian Model The given article below analyzes Dutch Disease as a significant hampering issue on the way of economic development. This article aims to define Dutch Disease and demonstrate its problematic essence and at the same time to suggest solutions for this challenging matter. We scrutinize Dutch Disease and the ways for overcoming it, instruments, which enable decision-makers to pursue economic policy in a such direction, when short-term economic booms won’t be able to hinder economic development. Keywords: Dutch Disease; Norwegian Model; Economic Security; Economic Boom. „ჰოლანდიური დაავადება“ – ნორვეგიული მოდელის თავისებურებანი ნაშრომში განხილულია „ჰოლანდიური დაავადება“, როგორც ეკონომიკის წარმატებით ფუნქციონი� Journal number 4 ∘ Simon Gelashvili ∘ New rules of Statistical Imputation for Interdependent Economic Time Series The article describes the technological scheme of the production of „statistical finished products” and the prerequisites for implementation of imputation, as well as the imputation methods known to date and new ones. According to the official statistical information, correlation coefficient between households’ income and expenses is calculated (in the case of Georgia’s). On the basis of time series, the practical application of the new „triangle method” of the imputation is analyzed; its results are compared with the calculations made by various methods, which clearly revealed the high level of reliability of the new method developed by us. Keywords: Imputation; Time Series; Correlation; Arithmetic Average; Forecasting. ურთიერთდამოკიდებული ეკონომიკური დროითი მწკრივების სტატისტიკური იმპუტაციის ახალი Journal number 4 ∘ Tengiz Verulava ∘ Medical Market: Information and Incentives The article reviews the characteristics of the medical market. The difference between the medical market and the usual market is substantiated. The main signs of the medical market are: risks and uncertainty, incomplete information (asymmetry of information), market power, limited competition, external effects, public good. If health and health care equity are desirable features, there might be need for government intervention because these qualities are not easily attained through the market. Government involvement in health care is often necessary because there are many market failures in health care and the market is not always able to correct such failures. Keywords: Health Economics; Ideal Market; Market Failure; Perfect Competition; Limited competition; Market Forces; Equity; Economic Efficiency. სამედიცინო ბაზარი: არსი, სპეციფიკა, სტიმულები სტატიაში მიმოხილულია � Journal number 4 ∘ Dimitri Javakhadze ∘ Development of Electronic Services in Georgia Functioning in „good governance“plays a crucial role for business, where the rule of law is guaranteed, the right to property is protected, the transparent and responsible attitude of governments towards business is felt. Due to the main goals of business, save time and financial resources, decrease administrative pressure, simplify communication with partners, more efficiently manage self-sustaining in the existing competitive world, without the introduction of electronic services in compliance with international standards, it is unacceptable. The article reviews important electronic services for business and their development opportunities. Keywords: El-Services; El-Commerce; El-Management; El-Platforms JEL Codes: L80, L81, L86, M15 ელექტრონული სერვისების განვითარება საქართველოში ახალი ათასწლეულის დასაწყისში სულ უფ Journal number 4 ∘ Sopio Bakuridze ∘ Peculiarities of Integration Relationships on the Regional Medical Services Market Current transformational processes over the last three decades in the country, which took place in the social-economic sphere of the state, caused fundamental changes in the field of medical service too. Requirements of market-economic changes, like various fields, in the field of medical service it has caused the need for searching innovative ways of solving and developing problems. Besides the state medical institution existing in the non-market economic system, which has free medical care for the population, appeared private medical institutions, which have moved to paid services. However, in the modern stage in the, market economy system it is not still perfect social and economic relations between the private and state sectors of medical area. In the conditions of a particularly complicated socio-economic background, when the rate of service growth is low, the country’s budget is scarce, prices are high including the price of medicines, the index of unemployment is high to Journal number 4 ∘ Nino Zurashvili ∘ Urbanization Processes in the Modern World The article discusses urbanization process in the modern world. What factors drive the growth of urbanization level throughout the world? What factors affect the process of urbanization in Europe? The article discusses how the big cities of Europe respond to this challenge. The article suggests the ways of urban development without ecological damage. The World Bank directives and recommendations for urbanization process are offered. The article discusses the urbanization processes in Georgia. What are the positive and negative sides of urbanization in Georgia? Keywords: Urbanization; Cities; Planning of Cities; Ecology; Infrastructure. JEL Codes: O18, R23, J11 ურბანიზაციის პროცესები თანამედროვე მსოფლიოში წინამდებარე სტატიის მიზანია თანამედროვე მსოფლიოში მიმდინარე ურბანიზაც� Journal number 4 ∘ Alexander Vasilyev ∘ Comparative Analysis of the Real Estate Market in Tbilisi The study deals with the determination of the dynamics of prices in the sector of residential spaces of the real estate in 2007-2016 in Tbilisi, separation of business cycles, evaluation of the investment climate through short-term forecast within the third and fourth quarters of 2016 and identification of determining factors in respect of price changes. Keywords: Real Estate; Business Cycles; Factor Analysis; Primary and Secondary Real Estate Markets. JEL Codes: E31, E32, R31 გაყიდვებზე მოქმედი ფაქტორების ანალიზი თბილისის უძრავი ქონების ბაზრის მაგალითზე სტატია ეძღვნება თბილისის საბინაო ბაზრის სექტორში მიმდინარე ტრანზაქციების ანალიზსს; საბინაო ბაზრის გაყიდვე� Journal number 4 ∘ Giorgi Shikhashvili ∘ Current Paradigms of Self-management: Synergic Understanding of Personal Health Management Nowadays, it is exceptionally important to research actual issues of selfmanagement, in particular, the synergic understanding of personal health management. For this purpose the article discusses the following issues: a synergic approach to human understanding; The underlying synergic paradigms of self-management; Biblicalsynergic understanding of management; Christian synergic paradigms of public and personal health management; Medical teaching according to the Bible; General and practical aspects of personal health management with specific individual treatment methods (treatment with juices, healthy foods, hunger, physical activity, etc.). The article contains the author’s visions, paradigms and concrete opinions in the direction of personal health management. Keywords: Synergic Paradigms of Self-Management; Medical Teaching According to the Bible; Synergic Understanding of Personal Health Management; Individual Treatment Methods. თვითმენეჯმენტ� Journal number 4 ∘ David Nizharadze ∘ Fundamental Concepts and Models of Innovation Management The article discusses about the fundamental concepts of innovative management, it’s types, theoretical and practical significance. Based on different scientists’ points of views, examples of companies, the statistical analysis is assessed features of the innovative process management, dynamics of the state’s financial support, and modern models of innovation management and in the conclusion there is presented the purpose of innovative mmanagement for innovative firms to achieve competitive advantage in local or international markets. Keywords: Innovation; Innovation management; Static Models of Innovation Management; Dynamic Models of Innovation Management. JEL Codes: O30, O31, O32 ინოვაციების მართვის თავისებურებები თანამედროვე ბიზნესში თანამედროვე ბიზნეს-სივრცეში, ინოვაციური მენეჯმ Journal number 4 ∘ Naira Gvedashvili ∘ For Improving the Introduction and Management of Innovations in the Georgian Health Care Sphere In the article, on the basis of critical analysis of individual researchers of the introduction and management of innovations and innovative processes existing nowadays in the sphere of health care there are set out some of the author’s opinions about the improvement of the introduction of innovations and management. At the contemporary stage innovations are generally a factor of successful functioning of all organizations as well as health care institutions: innovations create jobs, raise the level of medical care and ensure sustainable development of the sector. Keywords: Innovations in Health Care; Quality of Service; Innovative Managers; EU Experience. JEL Codes: I10, I11, I18 საქართველოს ჯანდაცვის სფეროში ინოვაციების დანერგვისა და მართვის სრულყოფისათვის სტატიაში ინოვაციების დანერგ