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Journal number 3 ∘ Elguja Mekvabishvili

“Why did Economists Fail to Predict the Global Financial Crisis?”

The article sets out a critical analysis of the different views of economists about financial and economic crises, especially on their forecasting problem. There is a well-founded assumption  that the gaps in the research of economic crisis  are largely due to the methodological weakness  of the prevailing mainstream economic theory. Moreover, the global financial crisis was a direct expression of the crisis of neoclassical economic theory. This article offers a new approach to crisis research based on fundamental principles of economic dynamics and contains the views of I. Schumpeter and N. Kondratiev. Keywords: Global financial and economic crisis, economic crisis forecasting, mainstream economic theories, economic dynamics, economic statics, methodologizms. JEL Codes:B20, B22, B4, F01 What do Economists Disagree About? On November 4 (2008), Queen Elizabeth II attended the opening ceremony of the new campus of the London School of Economics (LSE). Concerned by
Journal number 3 ∘ Vladimer Basaria

Private Property Relations, Socio-Economic Order and Entrepreneurship

An important role in ensuring the well-being of the population is how the society has mastered the defining (basic) reasons for its economic activities - its own relations and the motivation of the activities caused by them - and how it uses them to achieve the desired result. The coexistence and ratio of two forms of property, private property and public property, has historically always conditioned the essence of the socio-economic order, the result of economic activity. At the same time, private property, the substance that determines motivation, has always been dominant. Therefore, understanding the motivation of private owners, the correct theoretical assessment of the pros and cons of this motivation and the impact on the well-being of their society and its practical application should become one of the main means of developing high-yield production in our country. In our reality, the solution to this problem is complicated by the fact that private property was restored in the co
Journal number 3 ∘ Paata KoguashviliJoseph Archvadze

Agriculture of Georgia Faces Actual Challenges

Georgia's agriculture is gradually emerging from the severe, protracted economic crisis that has plagued it since the 1990s. It is true that the volume of output and value added in this sector has increased in recent years and the volume of the latter amounted to 3112.2 million GEL in 2019 (7.2% of GDP), however, if we compare it with other sectors and fields of the economy, the situation is not so good. In recent years, financial support from the state has clearly affected the agricultural sector, although the economic growth of the sector is still quite weakly correlated with the growth of state subsidies. During this period, the whole economy grew 2.6 times faster and grew by 33.2% compared to 2012. Agriculture - according to the increase in the last 7 years (2013-2019) (which was observed only for 2 years (2013 and 2018) - was in the penultimate place, however, there was a decrease in value added in the sector and due to it the volume decreased by 11.2% in 2017. Despite some growt
Journal number 3 ∘ Nino Janelidze

Social Entrepreneurship Business Models in the Case of Georgian Social Enterprises

 In modern business administration theories, the term “business model” is widely used to describe the process of value creation by organizations (Guo, Zhao and Tang 2013), (Amit and Zott 2001), (Chesbrough and Rosenbloom 2002), and describing the means of generating income (Stewart and Zhao 2000). (Drucker 1954).   Despite the proliferation of research in the field of social entrepreneurship, which describes the concepts of business models, it should be noted that in most cases, the term "business model" is referred to simply as "fashionable definition" (Sommerrock 2010) and is used in only a few papers. (Mair and Schoen 2007), (Seelos and Mair 2007), (Yunus 2010). It should be noted that these studies are fragmentary and almost non-existent in the Georgian context. The concept of a business model used in the article is used to discuss individual cases, to identify the features and characteristics of successful models of social entrepreneurship, and to assess th
Journal number 3 ∘ Maya Gogokhia

Directions for Improving Banking Activities at the Contemporary Stage

 The banking sector is an integral part of the financial and credit system. Consequently, in order to promote economic growth in the country, it is necessary to move the economy to a new stage of interaction between the real and financial sectors, which is reflected in increased investment in the restructuring of production and the renewal of major industry funds. Due to the fact that the securities market in Georgia is almost underdeveloped, deposits are the predominant form of mobilization of financial resources in banks. Therefore, the task of banks is to create forms of attracting funds that will actually interest customers and develop their saving habit, which determines the investment opportunities of the economy. The basis of banks' interaction with the industrial sector of the economy is their credit-investment and deposit-accumulation strategy. The difference of the money market from all other markets is its monopoly nature; the monopolist is usually the National Bank.
Journal number 3 ∘ Zumrud NadjafovaNatiq Gurbanov

The Process of Formation and Stages of the Development of Technoparks in Azerbaijan

Technopark is a subject of scientific and innovative infrastructure that creates conditions that positively affect the development of production in the scientific and technical sphere, with highly qualified personnel and experimental facilities. The development of the nonoil sector in Azerbaijan is a strategic goal. The government of Azerbaijan is taking all possible measures to develop the production sector. These measures include direct public investment and encouraging entrepreneurs to work actively in the applied economy. In Azerbaijan, there are sufficient natural resources and qualified personnel that contribute to the development of the production sector. Keywords: Development of industry, technopark, plant, state regulation, Azerbaijan JEL Codes: L60, L70, O10, P23, Q55 Industry is the main sector of the economy of Azerbaijan. Since the middle of the last century, thanks to the activities of the national leader of the Azerbaijani people, Heydar Aliyev, metallurgy, mechanical
Journal number 3 ∘ Davit SikharulidzeShota ShaburishviliTea MunjishviliLeila KadagishviliRusudan MaisuradzeKhatia Udesiani

Total Factor Productivity Analysis According to the Size of Economic Activity and Sectors in Georgia

                                                                                         The research was implemented within the framework of a                                                                                   scientific grant  project of TSU Faculty of Economics and Business. The main driver of Georgia's economic growth during the transformation period was domestic demand for supported remittances, capital flows, and economic liberalization, which led to increased productivity through sectoral redistribution. According to the World Ba
Journal number 3 ∘ Rati Mekvabishvili

On the Importance of Altruism, Prosocial Behavior and Christian Love in Behavioral Economics Studies

The research was supported by Shota Rustaveli Georgian National Science Foundation [Grant PHDF-19-321] In Behavioral Economics, research of prosocial behavior large-scale cooperation between strangers remains one of the most challenging and puzzling questions. In economic relations the risk of opportunistic behavior and cheating always exists. Opportunistic and selfish decisions may lead society to various suboptimal and ineffective economic equilibrium.  In recent theories of social preferences the relations between egoist and the “strong reciprocal” type of individuals are of crucial importance. And in these relations “Altruistic Punishment” is critical: If there is no altruistic punishment, cooperation between parties cannot be sustained. In presence of punishment mechanism and certain conditions, the strong reciprocator individual can enforce the whole group of selfish individuals to act prosaically and cooperate. Whether it is an altruist, a recipro
Journal number 3 ∘ Amiran Maglakelidze

Challenges and Perspectives of Digital Entrepreneurship in Georgia

Under the conditions of globalization, the rapid development of information technology has made it possible to carry out entrepreneurial activities in the virtual space. The widespread use of the Internet and the create of various digital platforms have laid the foundation for digital entrepreneurship as a modern form of entrepreneurial activity. To start a digital entrepreneurship, it is important to have continuous entrepreneurial and digital innovations, progressive vision of modern technological and electronic market conjuncture, creativity and the ability to predict future trends. Georgia is still characterized by low levels of digital entrepreneurial activity. Nowadays, the main problems of digital entrepreneurship are that the country has no virtually planned digital entrepreneurial policies, the permanent implementation of which will make it possible to produce digital products using digital platforms in the digital ecosystem. With regard to the global pace and prospects for t
Journal number 3 ∘

III National Scientific Conference dedicated to the Economist’s Day

 It has become a good tradition to hold a national scientific conference dedicated to the Economist’s Day. This year 's conference had a double workload, as it was also dedicated to the memory of TSU Professor Nodar Khaduri. That is why Faculty of Economics and Business, Ivane Javakhishvili Tbilisi State University, hosted the III National Scientific Conference on       September 11 of the current year on the topic: "Economics: Contemporary Challenges of Economic Science and Economic Policy." The conference was organized by the Commission of Economic Sciences of the Georgian National Academy of Sciences, TSU Faculty of Economics and Business, TSU Paata Gugushvili Institute of Economics, European University Faculty of Business and Technology, Institute for Research on Economic and Social Problems of Globalization, Journal "Globalization and Business". The organizational and scientific head of the conference was TSU Professor, Academician Vladime