Economics and Business
Referential and Reviewed International Scientific-Analytical Journal of Ivane Javakhishvili Tbilisi State University, Faculty of Economics and Business
Referential and Reviewed International Scientific-Analytical Journal of Ivane Javakhishvili Tbilisi State University, Faculty of Economics and Business
Journal number 4 ∘
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„ECONOMICS and BUZINESS“ VOLUM XV, N4, 2023. C O N T E N T S ECONOMIC THEORY ◊ ECONOMIC POLICY Demur Sichinava, Murtaz Magradze - Blockchain Technology, Cryptocurrency and Digital Currency: Current Situation and Key ChallengesMarine Natsvaladze - Behavioral Economics, Experimental Institutional Economics and New Institutional Economics: Understanding the Intersection of Three DisciplinesElguja mekvabishvili – The Theoretical Legacy of Professor Georgi Papava and Current Problems of Economic ScienceTinatin Lomsadze - Cluster Development Economic Policy in Nordic Countries MICROECONOMICS ◊ MACROECONOMICS ◊ ECONOMETRICS Marina Tabatadze - Strategy of State Support of the Economy in the Post-Crisis PeriodTengiz Verulava - Healthcare Expenditures in Georgia and Recommendations of the World Health OrganizationNestani Gaprindashvili - The Importance of Economic Analysis of Environmental Impacts: Theoretical Framework andJournal number 4 ∘ Demur Sitchinava ∘ Murtaz Maghradze ∘
Blockchain Technology, Cryptocurrency and Digital Currency: Current Situation and Key Challenges
journal N 4.2023 In the era of modern technological evolution, the fundamental economic systems existing today are undergoing a significant transformation. One of the most convincing changes is in the field of finance. A clear example of this is the rapid increase in the number of digital currencies, which has attracted the attention of the world community.A digital currency is any currency that exists and circulates only in electronic form. Today, most digital currencies are also cryptocurrencies. Cryptocurrency is a digital currency based on blockchain technology (Blockchain, Eng. – a chain of blocks – an ever-growing list of records called "blocks") and protected cryptographically (Greek: kryptós – secret, hidden).The history of blockchain creation begins in 1982. American cryptographer David Chaum first presented a blockchain-like protocol in his thesis, which was further developed by programmer Stuart Hubbert and physicist Scott Stornett. They invented deJournal number 4 ∘ Marine Natsvaladze ∘
Behavioral Economics, Experimental Institutional Economics and New Institutional Economics: Understanding the Intersection of Three Disciplines
journal N 4.2023 The article presents a vision about the priority role of behavioral economics for the development of institutional economics in the conditions of the development of economic science. Institutions can include anything from government and legal systems to cultural beliefs and shared values. It is concerned with how institutions emerge, how they evolve, and how they can be designed to promote desirable economic outcomes.Scientific studies in the New Institutional Economics explores the role of institutions in economic development, market functioning, governance, and policy-making. It examines various theoretical perspectives and empirical studies to understand how institutions influence economic behavior and shape economic systems. The purpose of scientific research is focused on understanding how institutions influence economic behavior, taking into account the insights from behavioral economics and using experimental methods to test hypotheses and observe actual behaviJournal number 4 ∘
Theoretical Heritage of Professor Giorgi Papava and Actual Problems of Economic Science
https://doi.org/10.52340/eab.2023.04.03 The paper discusses the contribution made by the famous Georgian economist, professor Giorgi Papava, to the development of economic science, first of all, theoretical economics, which was manifested by his creation of a new methodology in the form of "periodontal-genetic, polyphonic and morphological rule of economic thinking". The constituent elements of this methodology are analyzed. Systemic-genetic connections, periodontism, economic morphology, economic polyphony. It is noted that the scientist was able to solve three important scientific problems using the new methodology created by him.First, it proposed a new confirmation for the heuristic potential of theoretical economics and demonstrated its leading role in the system of economic sciences.Second, it gave us a profound critique of modern "economics".Third, he established the principles and directions of transformation of the "traditional" or free market theory into the mixed economic tJournal number 4 ∘ Tinatin Lomsadze ∘
Cluster Development Economic Policy in Nordic Countries
The article presents the economic policy of cluster development in Northern European countries. After the collapse of the Soviet Union, the Baltic countries were able to successfully share the experiences of the mentioned countries. Based on the practical experience of the Baltic countries, the Northern European model can be transferred to the countries belonging to the post-Soviet space countries where the process of building state institutions and reforming the education system is still underway. Georgia is one of these countries.After the industrialization process began, the uncontrolled exploitation of resources led to irreversible ecological processes in the environment, the most dangerous of which are the emission of GHG and the negative consequences of climate change caused by it.On September 25, 2015, the United Nations, by adopting the concept of sustainable development, began an active struggle to resolve the issue of climate change and saving resources. In the Paris AgreemenJournal number 4 ∘ Marina Tabatadze ∘
Strategy of State Support of the Economy in the Post-Pandemic Period
One of the main economic fonctions of a state is to prevent developmental risks and to define correct national anti-crisis policies in harmony with global requirements. The last pandemic processes particularly highlighted the importance of state’s economic fonction and of its governing role. This article discusses some strategies for effectively managing integration processes and the economic mechanisms of a state which interfare with the state governance system. To do so, the article analyses the state’s economic fonction during a non-stable development and the impact of anti-crisis policy on socio-economic system and on the stablisation of development processes. Among others, the article presents the key topics underlining the state fonction in crisis management: stabilisation strategies of modern world economic processes, correct coordination of the state system in a crisis environment and optimal repartition of fonctions among states, modern concepts of political and ecJournal number 4 ∘ Tengiz Verulava ∘
Healthcare Expenditures in Georgia and Recommendations of the World Health Organization
The amount of spending on health care depends on various factors. Health spending is significantly influenced by a country's economic capacity rather than the need for medical services, so high-income countries have the ability to spend more money on health care. The amount of health care costs is influenced by the solvency of the population, the level of their taxes and insurance contributions. The richer a person is, the more he spends on health care.Obviously, the higher the level of development of the country, the more funds are spent on health care, and therefore the higher the health status of the population (eg, the average life expectancy). At the same time, high health care costs are not the main means of improving the health status of the population. USA. It is the richest country in the world, where the most money is spent on health care, but the indicators of the health status of the population are not so high compared to other developed countries.High expenditures on healtJournal number 4 ∘ Nestani Gaprindashvili ∘
The Importance of Economic Analysis of Environmental Impacts: Theoretical Framework and Practical Policy Implications
It s been a subject of long-time discussions if environmental impacts matter as much as economic and social challenges facing the world today. One of the main causes why it is hard, not only for the general society but also for the professionals too, to have a clear picture of environment and climate-related challenges, is that these impacts are rarely analyzed in economic terms. The purpose of this study is to present the importance of economic analysis of environmental impacts and outline their role in modern welfare states. The paper uses comprehensive secondary data sources, quantitative and qualitative data analysis for this study; books, scientific articles, methodologies and guides as well as international organizations’ data and assessments are examined here. Literature review method is used in the article to present the theoretical framework in detail. In particular, the importance of assessing environmental impacts is shown in connection with welfare economics, and theJournal number 4 ∘ Nugzar Todua ∘ Charita Jashi ∘ Nia Todua ∘
The Impact of Social Media Marketing Activities on Purchase Intentions of Healthcare Consumers
According to this study, social networks have become an essential part of the lives of Georgian consumers, and they use them frequently. Georgian consumers are increasingly using the Internet to obtain medical treatment and are especially interested in information linked to health. Nevertheless, it should be noted that COVID-19 has significantly altered its perspective on social media. As a result, individuals started to show greater interest in the details and deals offered by healthcare providers. Healthcare providers operating in Georgia's medical services industry have official social media profiles. Our research indicates that Georgian consumers demonstrate a reasonably low activity level. In addition, Georgian consumers do not trust the content shared on social media. Regression analysis revealed statistically significant values that show how customer engagement, trust, and behavioural intentions relate to social media activities offered by healthcare organizations. AdditionallyJournal number 4 ∘ Nana Katsitadze ∘ Elisabed Baliashvili ∘ Mariam Qutateladze ∘
The Trends of the Hotel Indusrtry Development in International and Georgian Markets
The main purpose of the reasearch was to reveal the recent trends of the hotel industry in International and Georgian markets . The conclusions will be served for the development of the policies of forecasting and further development of Georgian tourism.According to the studies of the international reseaches , it was revealed that along with the recovery of tourism sector the growth of economic indicators in the hotel sector was recorded. The paper examines the current changes in the global hotel market from a global point of view, both structurally and functionally. Over the years, the global hotel market has experienced certen changes, which is due to the business activites, policies of the operating companies. Some of them even left the hotel market . As of 2021, the top ten of the world’s largest hotel chains were mainly represented American operators along with British and French. From 2019 to 2022 years new leaders appeared in the global hotel market and accordingly, the pJournal number 4 ∘ Natia Barbakadze ∘
The Impact of the Covid 19 Pandemic on Tourism and Hospitality Management (in the case of chain hotels of the Adjara region)
The article discusses the vital role of tourism in the economic development of Georgia and the impact of the COVID-19 pandemic on the Country’s economy, especially on the hotel industry. Challenges faced by the hotel sector due to pandemic-induced restrictions, resulting in lower revenues and job losses, are presented. The negative consequences for global and local economies are highlighted, citing a UN report on occupational hazards in the tourism industry. The main challenge in the post-pandemic period is highlighted - the outflow of professional staff, the restoration of trust and the re-hiring of experienced personnel. It focuses on staffing challenges in the tourism and hospitality sector in the Ajara region and tries to answer several key issues. These issues identify hotels that have been able to retain staff during the pandemic. The assessment of the impact of staff stability on the hotel’s economic situation shows how the hotel chain of the Adjara region contributeJournal number 4 ∘ Megi Surmanidze ∘
Importance of Social Responsibilities of Business for Companies and Modern Trends
The article deals with the social responsibilities of business, its global role and importance, which in the modern business environment is a factor with significant influence, changing the company’s reputation. The author’s goal is to define the importance of business social responsibilities in business and to present its effects as clearly as possible.The article presents views on the social responsibilities of business: “CSR-corporate social responsibility refers to the economic, legal, moral, ecological, sociological and psychological environment” (Bernard, 198), taking into account this view, companies’ responsibility for society should not be limited to economic ones. by activity.The article compares the views of the last century about the social responsibility of business and the views of modern specialists, a quote is given: “Business has only one social responsibility.” In the article published in 1970, Milton Friedman discusses the so