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 ∘

Journal N4, 2025 content

„ECONOMICS and BUZINESS“ VOLUM XVII, N4, 2025

C O N T E N T

ECONOMIC THEORY ◊ ECONOMIC POLICY

Revaz Gvelesiani, Irina Gogorishvili - Economic Diplomacy - the Pursuit of National Economic Interests at the International Level

Vladimer Glonti, Paata Aroshidze - Two Paradigms in Post-Communist Economic Transformation: A Comparative Analysis

Zurab Garakanidze - Transport and Communication Security Challenges in Georgia

David Bakradze - Historical Transformation of Geoeconomic Policy and Georgia’s Economical Community Development Model in the XXI Century

BUSINESS ◊ MANAGEMENT ◊ MARKETING

Lali Khikhadze - Global Ecological Challenges: The Necessity and Prospects for Green Business Development in the 21st Century

Sadigov Yunus Musa oğlu - Analysis of Factors Affecting Production of Agro-food Industry Products in Azerbaijan

Zhana Tolordava - Objectives, Principles and Advantages of Problem-based Learning

Tinatin Lomsadze - Classification of Clusters and Its Improving Ways in Georgia

POPULATION ECONOMICS

Mirian Tukhashvili - Settlement Crisis in Post-Soviet Georgia

Akifa Akif Aghayarova - Socio-Economic Aspects of International Migration in Azerbaijan

CRITICISM and BIBLIOGRAFY

Ioseb Archvadze - The Georgian Economic School Achievement

2025-12-15

Journal number 4 ∘ Revaz Gvelesiani ∘ Irina Gogorishvili ∘

Economic Diplomacy - the Pursuit of National Economic Interests at the International Level

doi.org/10.52340/eab.2025.17.04.01 journal N 4.2025 The aim of this paper is to examine the modern understanding of economic diplomacy, its role in state activities, and the practical economic goals and objectives pursued by diplomatic missions. A deeper grasp of the dynamics of international interaction in the political and economic spheres contributes to the advancement of relations and the strengthening of interdependence among countries. The paper explores both the form and concept of economic diplomacy. As an instrument of state economic policy, economic diplomacy belongs to the domain of normative economics. Its practice employs a wide range of tools, which can be grouped into three main areas: Commercial diplomacy: the use of political influence and economic relations to promote international trade and investment. This plays a crucial role in improving market functioning and/or addressing market failures, thereby reducing the costs and risks of cross-border
2025-12-15

Journal number 4 ∘ Vladimer Glonti ∘ Paata Aroshidze ∘

Two Paradigms in Post-Communist Economic Transformation: A Comparative Analysis

doi.org/10.52340/eab.2025.17.04.02 This article examines two conceptually distinct theoretical approaches to post communist economic transformation: Professor Jeffrey Sachs’s shock therapy model and Academician Vladimer Papava’s necroeconomics theories. It analyzes the epistemological foundations, practical applications, and outcomes of these paradigms across different historical and institutional contexts. Special attention is devoted to Academician Papava’s recent works – Unconventional Economics (2021) and From Retroeconomics to Sanctionomics (2024) – which further develop his theoretical system in light of contemporary global challenges. The article also traces Professor Sachs’s intellectual evolution from a co author of the Washington Consensus to a scholar increasingly focused on sustainable development and global solidarity. The study concludes that Academician Papava’s contextual, adaptive, and institutionally grounded approach
2025-12-15

Journal number 4 ∘ Zurab Garakanidze ∘

Transport and Communication Security Challenges in Georgia

doi.org/10.52340/eab.2025.17.04.03 The principal supporters of the tripartite agreement on the Zangezur Corridor (TRIPP), as discussed in the article, include the United States, the Armenian and Azerbaijani administrations and the Pan-Turkic forces in Turkey, which seek to expand their influence in the Caspian Sea region, Central Asia, and even within projects linked to China’s “Belt and Road Initiative”. Their position rests on provisions of the agreement that stipulate: 1) Establishing transport links between the western regions of Azerbaijan and Nakhchivan via Armenia along the banks of the Araks River; 2) Construction of new transport connections between Nakhchivan and other regions of Azerbaijan. Against this backdrop, claims that TRIPP could serve as an alternative to the Georgia-EU western “corridor” for Caspian hydrocarbons remain ambiguous. For example, in Forbes (July 18, 2025), Guney Yildiz, in an article titled “America’s
2025-12-15

Journal number 4 ∘ David Bakradze ∘

Historical Transformation of Geoeconomic Policy and Georgia s Economical Community Development Model in the XXI Century

doi.org/10.52340/eab.2025.17.04.04 This paper offers a concise analytical overview of Georgia’s geoeconomic development from the medieval era to the present, highlighting how shifts in the global economic order have continuously shaped the country’s political, social, and economic trajectory. It contends that Georgia’s strategic location historically connected it to major regional and transcontinental trade routes, positioning the country both as a vital transit corridor and as a space dependent on external geopolitical and economic powers. Building on this historical context, the paper addresses Georgia’s contemporary challenges, including rural depopulation, demographic decline, large-scale emigration, regional inequality, and the concentration of economic activity within a limited number of sectors. The study underscores that Georgia’s development has been constrained by weak local self-governance, the absence of capital accumulation at the community
2025-12-15

Journal number 4 ∘ Lali Khikhadze ∘

Global Ecological Challenges: The Necessity and Prospects for Green Business Development in the 21st Century

doi.org/10.52340/eab.2025.17.04.05 The scientific work examines one of the most pressing issues of modernity: global ecological challenges and the main directions for overcoming them. It analyzes the essence, role, and significance of the natural environment at every stage of human development, as well as the relationship between society and nature. The study also considers the scale of society’s negative impact and the resulting ecological challenges. The 21st century has brought an urgent need for fundamental global changes in the natural environment. Civilized society has begun to recognize that neither economic growth nor material prosperity can bring true progress to humanity if people are neglected and if the balance between the rational use of natural resources and the laws of the natural environment is not maintained. The work outlines the complex nature and categories of ecological problems, along with their challenges and scale. In particular, it highlights water
2025-12-15

Journal number 4 ∘ Yunus Sadigov Musa oğlu ∘

Analysis of Factors Affecting Production of Agro-food Industry Products in Azerbaijan

doi.org/10.52340/eab.2025.17.04.06 The agricultural and agro-processing sector of Azerbaijan is of vital importance for the country\'s food security and economic sustainability. This article provides an in-depth analysis of the factors affecting the production of agro-processing products. The main goal of the study is to understand the economic, technological and social factors that increase or limit the volume of production in this sector.The development of the agro-processing sector is directly related to agriculture. If agricultural products are produced in a stable and high-quality manner, they will provide sufficient raw materials for agro-processing enterprises. As a result, the sector will develop more dynamically. Moreover, increased investment and the application of modern technologies are key drivers of productivity growth.The article measures the impact of economic factors on the production of agro-processing products using the LS-regression model, and the results show
2025-12-15

Journal number 4 ∘ Zhana Tolordava ∘

Objectives, Principles and Advantages of Problem-based Learning

doi.org/10.52340/eab.2025.17.04.07 Problem-Based Learning (PBL) is an educational approach centered on solving real-life problems. It is widely regarded as an innovative and effective teaching method that emphasizes student independent. In PBL, learners take on a more active role by engaging with practical challenges. This process involves thoroughly analyzing the problem, assessing their own competence in the relevant domain, and identifying additional information and resources needed to develop a solution. As a result, the experience gained through PBL can often be more impactful than that acquired through professional activities. This is largely due to the diverse methods employed. One notable example is the use of simulation models, such as business games, which expand the scope of reality, enable analysis of decision outcomes, and facilitate the exploration of alternative solutions. Within a virtual environment tailored to a specific problem, individuals are free to
2025-12-15

Journal number 4 ∘ Tinatin Lomsadze ∘

Classification of Clusters and Its Improving Ways in Georgia

doi.org/10.52340/eab.2025.17.04.08 In the modern world, national economic systems operate within an unstable, rapidly changing, and globally integrated environment, marked by numerous challenges such as economic crises, social inequality, geopolitical tensions, cybersecurity risks, and the depletion of natural resources. Against this backdrop, a country’s strategic objectives are no longer limited to achieving economic growth alone; ecological security, social equity, and sustainable development are becoming increasingly significant. In line with contemporary trends in economic policy, modern development strategies must increasingly rely on instruments that promote collaboration, integrated governance, and innovative approaches. Within this context, cluster-based economic policy emerges as an effective tool for strengthening innovation ecosystems, enhancing institutional resilience, supporting industrial growth, and fostering convergence across economic sectors. The concept of
2025-12-15

Journal number 4 ∘ Mirian Tukhashvili ∘

Settlement Crisis in Post-Soviet Georgia

doi.org/10.52340/eab.2025.17.04.09 Before the collapse of the USSR, Georgia’s settlement system evolved in line with the country’s socio-economic development. However, the post-Soviet economic crisis, coupled with a catastrophic decline in labor market demand and intensified emigration, disrupted the regional distribution of the population. This led to the atrophy of the urban settlement system, the erosion of the city-forming base, and a slowdown in urbanization processes. In the context of an immature market economy, state regulation of settlement patterns, the organization of new settlements, and the management of internal and external migration flows became impossible. These challenges were further exacerbated by sharp depopulation trends in donor regions, which significantly weakened the state’s ability to influence settlement dynamics. Policies aimed at curbing the growth of large cities and stimulating the socio-economic development of medium and small towns
2025-12-15

Journal number 4 ∘ Akifa Akif Aghayarova ∘

Socio-Economic Aspects of International Migration in Azerbaijan

doi.org/10.52340/eab.2025.17.04.10 The article examines the key features of international migration regulation in the Republic of Azerbaijan. The research methodology is grounded in comparative analytical approaches. The significance of the study lies in identifying the principal advantages that international migration offers to the country. In this context, the research explores both the theoretical and methodological foundations of migration regulation, as well as the economic development experiences of various states. Particular attention is given to the management and state regulation of international migration processes in Azerbaijan. To evaluate the influence of macroeconomic factors on migration, the study employs statistical analysis, generalization techniques, and regression and econometric methods. The current dynamics of international migration in Azerbaijan are analyzed, synthesized, and assessed, leading to important findings. Keywords: International population
2025-12-15

Journal number 4 ∘ Ioseb Archvadze ∘

The Georgian Economic School Achievement

Teimuraz Beridze, GEORGIA IN TRANSITION THREE DECADES ON. Publishing House “UNIVERSALI”. Tbilisi, 2025, 185p. The transition to a market economy in Georgia actually took place in parallel with the process of state restoration, due to which Georgian economic science also went through several important stages distinguished by fundamentally new features and regularities.At the first stage, the basic concepts, categories, action plans, and programs were quickly and often unsystematically transferred and adapted to Georgian reality, which generally characterizes a developed market economy.At the second stage, Georgian economic science began to characterize the ongoing and often contradictory processes of the market economy in the country, taking into account the specifics and peculiarities that were and are observed in Georgia. At the third, modern stage, which can already be boldly called the international expansionism of Georgian economic thought and views, Georgian
2025-12-15

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 ∘ Journal N4, 2025 content „ECONOMICS and BUZINESS“ VOLUM XVII, N4, 2025 C O N T E N T ECONOMIC THEORY ◊ ECONOMIC POLICY Revaz Gvelesiani, Irina Gogorishvili - Economic Diplomacy - the Pursuit of National Economic Interests at the International Level Vladimer Glonti, Paata Aroshidze - Two Paradigms in Post-Communist Economic Transformation: A Comparative Analysis Zurab Garakanidze - Transport and Communication Security Challenges in Georgia David Bakradze - Historical Transformation of Geoeconomic Policy and Georgia’s Economical Community Development Model in the XXI Century BUSINESS ◊ MANAGEMENT ◊ MARKETING Lali Khikhadze - Global Ecological Challenges: The Necessity and Prospects for Green Business Development in the 21st Century Sadigov Yunus Musa oğlu - Analysis of Factors Affecting Production of Agro-food Industry Products in Azerbaijan Zhana Tolordava - Objectives, Principles and Advantages of Problem-based Learning Tinatin Lomsadze - Classification of Clusters and Its Improving Ways in Georgia POPULATION ECONOMICS Mirian Tukhashvili - Settlement Crisis in Post-Soviet Georgia Akifa Akif Aghayarova - Socio-Economic Aspects of International Migration in Azerbaijan CRITICISM and BIBLIOGRAFY Ioseb Archvadze - The Georgian Economic School Achievement 2025-12-15 Journal number 4 ∘ Revaz Gvelesiani ∘ Irina Gogorishvili ∘ Economic Diplomacy - the Pursuit of National Economic Interests at the International Level doi.org/10.52340/eab.2025.17.04.01 journal N 4.2025 The aim of this paper is to examine the modern understanding of economic diplomacy, its role in state activities, and the practical economic goals and objectives pursued by diplomatic missions. A deeper grasp of the dynamics of international interaction in the political and economic spheres contributes to the advancement of relations and the strengthening of interdependence among countries. The paper explores both the form and concept of economic diplomacy. As an instrument of state economic policy, economic diplomacy belongs to the domain of normative economics. Its practice employs a wide range of tools, which can be grouped into three main areas: Commercial diplomacy: the use of political influence and economic relations to promote international trade and investment. This plays a crucial role in improving market functioning and/or addressing market failures, thereby reducing the costs and risks of cross-border 2025-12-15 Journal number 4 ∘ Vladimer Glonti ∘ Paata Aroshidze ∘ Two Paradigms in Post-Communist Economic Transformation: A Comparative Analysis doi.org/10.52340/eab.2025.17.04.02 This article examines two conceptually distinct theoretical approaches to post communist economic transformation: Professor Jeffrey Sachs’s shock therapy model and Academician Vladimer Papava’s necroeconomics theories. It analyzes the epistemological foundations, practical applications, and outcomes of these paradigms across different historical and institutional contexts. Special attention is devoted to Academician Papava’s recent works – Unconventional Economics (2021) and From Retroeconomics to Sanctionomics (2024) – which further develop his theoretical system in light of contemporary global challenges. The article also traces Professor Sachs’s intellectual evolution from a co author of the Washington Consensus to a scholar increasingly focused on sustainable development and global solidarity. The study concludes that Academician Papava’s contextual, adaptive, and institutionally grounded approach 2025-12-15 Journal number 4 ∘ Zurab Garakanidze ∘ Transport and Communication Security Challenges in Georgia doi.org/10.52340/eab.2025.17.04.03 The principal supporters of the tripartite agreement on the Zangezur Corridor (TRIPP), as discussed in the article, include the United States, the Armenian and Azerbaijani administrations and the Pan-Turkic forces in Turkey, which seek to expand their influence in the Caspian Sea region, Central Asia, and even within projects linked to China’s “Belt and Road Initiative”. Their position rests on provisions of the agreement that stipulate: 1) Establishing transport links between the western regions of Azerbaijan and Nakhchivan via Armenia along the banks of the Araks River; 2) Construction of new transport connections between Nakhchivan and other regions of Azerbaijan. Against this backdrop, claims that TRIPP could serve as an alternative to the Georgia-EU western “corridor” for Caspian hydrocarbons remain ambiguous. For example, in Forbes (July 18, 2025), Guney Yildiz, in an article titled “America’s 2025-12-15 Journal number 4 ∘ David Bakradze ∘ Historical Transformation of Geoeconomic Policy and Georgia s Economical Community Development Model in the XXI Century doi.org/10.52340/eab.2025.17.04.04 This paper offers a concise analytical overview of Georgia’s geoeconomic development from the medieval era to the present, highlighting how shifts in the global economic order have continuously shaped the country’s political, social, and economic trajectory. It contends that Georgia’s strategic location historically connected it to major regional and transcontinental trade routes, positioning the country both as a vital transit corridor and as a space dependent on external geopolitical and economic powers. Building on this historical context, the paper addresses Georgia’s contemporary challenges, including rural depopulation, demographic decline, large-scale emigration, regional inequality, and the concentration of economic activity within a limited number of sectors. The study underscores that Georgia’s development has been constrained by weak local self-governance, the absence of capital accumulation at the community 2025-12-15 Journal number 4 ∘ Lali Khikhadze ∘ Global Ecological Challenges: The Necessity and Prospects for Green Business Development in the 21st Century doi.org/10.52340/eab.2025.17.04.05 The scientific work examines one of the most pressing issues of modernity: global ecological challenges and the main directions for overcoming them. It analyzes the essence, role, and significance of the natural environment at every stage of human development, as well as the relationship between society and nature. The study also considers the scale of society’s negative impact and the resulting ecological challenges. The 21st century has brought an urgent need for fundamental global changes in the natural environment. Civilized society has begun to recognize that neither economic growth nor material prosperity can bring true progress to humanity if people are neglected and if the balance between the rational use of natural resources and the laws of the natural environment is not maintained. The work outlines the complex nature and categories of ecological problems, along with their challenges and scale. In particular, it highlights water 2025-12-15 Journal number 4 ∘ Yunus Sadigov Musa oğlu ∘ Analysis of Factors Affecting Production of Agro-food Industry Products in Azerbaijan doi.org/10.52340/eab.2025.17.04.06 The agricultural and agro-processing sector of Azerbaijan is of vital importance for the country\'s food security and economic sustainability. This article provides an in-depth analysis of the factors affecting the production of agro-processing products. The main goal of the study is to understand the economic, technological and social factors that increase or limit the volume of production in this sector.The development of the agro-processing sector is directly related to agriculture. If agricultural products are produced in a stable and high-quality manner, they will provide sufficient raw materials for agro-processing enterprises. As a result, the sector will develop more dynamically. Moreover, increased investment and the application of modern technologies are key drivers of productivity growth.The article measures the impact of economic factors on the production of agro-processing products using the LS-regression model, and the results show 2025-12-15 Journal number 4 ∘ Zhana Tolordava ∘ Objectives, Principles and Advantages of Problem-based Learning doi.org/10.52340/eab.2025.17.04.07 Problem-Based Learning (PBL) is an educational approach centered on solving real-life problems. It is widely regarded as an innovative and effective teaching method that emphasizes student independent. In PBL, learners take on a more active role by engaging with practical challenges. This process involves thoroughly analyzing the problem, assessing their own competence in the relevant domain, and identifying additional information and resources needed to develop a solution. As a result, the experience gained through PBL can often be more impactful than that acquired through professional activities. This is largely due to the diverse methods employed. One notable example is the use of simulation models, such as business games, which expand the scope of reality, enable analysis of decision outcomes, and facilitate the exploration of alternative solutions. Within a virtual environment tailored to a specific problem, individuals are free to 2025-12-15 Journal number 4 ∘ Tinatin Lomsadze ∘ Classification of Clusters and Its Improving Ways in Georgia doi.org/10.52340/eab.2025.17.04.08 In the modern world, national economic systems operate within an unstable, rapidly changing, and globally integrated environment, marked by numerous challenges such as economic crises, social inequality, geopolitical tensions, cybersecurity risks, and the depletion of natural resources. Against this backdrop, a country’s strategic objectives are no longer limited to achieving economic growth alone; ecological security, social equity, and sustainable development are becoming increasingly significant. In line with contemporary trends in economic policy, modern development strategies must increasingly rely on instruments that promote collaboration, integrated governance, and innovative approaches. Within this context, cluster-based economic policy emerges as an effective tool for strengthening innovation ecosystems, enhancing institutional resilience, supporting industrial growth, and fostering convergence across economic sectors. The concept of 2025-12-15 Journal number 4 ∘ Mirian Tukhashvili ∘ Settlement Crisis in Post-Soviet Georgia doi.org/10.52340/eab.2025.17.04.09 Before the collapse of the USSR, Georgia’s settlement system evolved in line with the country’s socio-economic development. However, the post-Soviet economic crisis, coupled with a catastrophic decline in labor market demand and intensified emigration, disrupted the regional distribution of the population. This led to the atrophy of the urban settlement system, the erosion of the city-forming base, and a slowdown in urbanization processes. In the context of an immature market economy, state regulation of settlement patterns, the organization of new settlements, and the management of internal and external migration flows became impossible. These challenges were further exacerbated by sharp depopulation trends in donor regions, which significantly weakened the state’s ability to influence settlement dynamics. Policies aimed at curbing the growth of large cities and stimulating the socio-economic development of medium and small towns 2025-12-15 Journal number 4 ∘ Akifa Akif Aghayarova ∘ Socio-Economic Aspects of International Migration in Azerbaijan doi.org/10.52340/eab.2025.17.04.10 The article examines the key features of international migration regulation in the Republic of Azerbaijan. The research methodology is grounded in comparative analytical approaches. The significance of the study lies in identifying the principal advantages that international migration offers to the country. In this context, the research explores both the theoretical and methodological foundations of migration regulation, as well as the economic development experiences of various states. Particular attention is given to the management and state regulation of international migration processes in Azerbaijan. To evaluate the influence of macroeconomic factors on migration, the study employs statistical analysis, generalization techniques, and regression and econometric methods. The current dynamics of international migration in Azerbaijan are analyzed, synthesized, and assessed, leading to important findings. Keywords: International population 2025-12-15 Journal number 4 ∘ Ioseb Archvadze ∘ The Georgian Economic School Achievement Teimuraz Beridze, GEORGIA IN TRANSITION THREE DECADES ON. Publishing House “UNIVERSALI”. Tbilisi, 2025, 185p. The transition to a market economy in Georgia actually took place in parallel with the process of state restoration, due to which Georgian economic science also went through several important stages distinguished by fundamentally new features and regularities.At the first stage, the basic concepts, categories, action plans, and programs were quickly and often unsystematically transferred and adapted to Georgian reality, which generally characterizes a developed market economy.At the second stage, Georgian economic science began to characterize the ongoing and often contradictory processes of the market economy in the country, taking into account the specifics and peculiarities that were and are observed in Georgia. At the third, modern stage, which can already be boldly called the international expansionism of Georgian economic thought and views, Georgian 2025-12-15