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 1 ∘

Journal N1, 2026 content

„ECONOMICS and BUZINESS“ VOLUM XVIII, N1, 2026

C O N T E N T

ECONOMIC THEORY ◊ ECONOMIC POLICY

Vladimer Papava, Elguja Mekvabishvili - The Evolution of the World Monetary Order from “Paris” to “Post-Jamaica” (Historical-Logical Analysis)

Murman Tsartsidze, Irma Tkemaladze, Shota Gabadadze - Peculiarities in Implementing the Concept of Decent Work in Georgia: Challenges and Prospects

Marina Chavleishvili - Higher Education System – Analysis, Problems, Challenges, and Solutions

Gulshen Zaid Yuzbashieva, Gulnar Jafar Qadirova - Innovative Policy and State Support in Azerbaijan

Elene Kobakhidze - Waste Management as a Prerequisite for the Development of the Green Economy in Georgia

Raqif X. Gasimov, Raqif X. Gasimov – Human Resources Planning in Local Governments in Azerbaijan: A Study in the Horthwestern Region

DIGITAL ECONOMY

Gulnaz Erkomaishvili - Artificial Intelligence - An Innovative Tool for Entrepreneurship Development

Tea Munjishvili, Shota Shaburishvili, Davit Sikharulidze, Leila kadagishvili, Irakli gazdeliani, Zviadi Sigua - Digitalization and Foreign Trade Resilience under Geopolitical Shocks: The Case of Georgia

SECTORAL ECONOMICS

Simon Gelashvili, Nino Abesadze, Lia Dzebisauri - Economic and Statistical Study of Alcoholic Beverage Consumption among Students in Georgia

Tengiz Verulava - Transformation of Pension Systems in the South Caucasus: A Comparative Analysis of Georgia, Armenia, and Azerbaijan

FINANCE and BANKING ◊ ACCAUNTING and AUDIT

Maya Gogokhia - On the Issue of Investment Efficiency in Securities

Beka Darakhvelidze - A Methodological Framework for Modified CAPM Estimation

ANNIVERSARIES

Professor Yuri Ananiashvili -75

Professor Ioseb Archvadze - 70

BRIGHT MEMORY

Professor Ramaz Abesadze

2026-03-12

Journal number 1 ∘ Vladimer Papava ∘ Elguja Mekvabishvili ∘

The Genesis of the World Monetary Order from "Paris" to "Post-Jamaica" (Historical-Logical Analysis)

doi.org/10.52340/eab.2026.18.01.01. journal N 1.2026 The article argues that the old world order is rapidly being replaced by a new one. The previous order, established after World War II, was shaped by the global rivalry between two superpowers with opposing political and socio-economic systems: The United States and the Soviet Union. In the early 1990s, the collapse of the USSR, and, with it, the so called “socialist camp,” gave rise to a unipolar world order dominated by the United States, replacing the former bipolar system. At the heart of any world order lies the global economic order, understood as the systemic unity of rules, laws, norms, and the supporting infrastructure of supranational organizations that define and regulate economic relations among states. The unipolar order that emerged carried a distinctly liberal character, sustained by a global economic framework rooted in free trade. The article conceptualizes the international economic order as the
2026-03-12

Journal number 1 ∘ Murman Tsartsidze ∘ Irma Tkemaladze ∘ Shota Gabadadze ∘

Peculiarities in Implementing the Concept of Decent Work in Georgia: Challenges and Prospects

doi.org/10.52340/eab.2026.18.01.02. In the context of ongoing globalization and the digital transformation of the economy, the concept of enhancing "decent work and quality of life" has become particularly relevant for achieving sustainable and stable development. The evolution of labor relations – and especially the provision of decent working conditions – must play a crucial role in this process. This issue is especially pressing in Georgia, where widespread, chronic unemployment remains one of the most acute and persistent challenges, recognized as a major driver of poverty. Addressing these problems requires close attention to the recommendations of the International Labor Organization regarding labor market regulation and social and labor relations more broadly, as well as the proper fulfillment of obligations outlined in the Association Agreement with the European Union. The "Decent Work Concept," as a tool for implementing the global goals of the International
2026-03-12

Journal number 1 ∘ Marina Chavleishvili ∘

Higher Education System – Analysis, Problems, Challenges, and Solutions

doi.org/10.52340/eab.2026.18.01.03. The article examines the challenges facing the higher education system and explores strategies for addressing them. Globalization, rapid technological progress, and the evolving labor market have created multifaceted and increasingly complex pressures on education. Over recent decades, Georgia has pursued extensive modernization in higher education, aiming to strengthen and improve overall system performance. These efforts include comprehensive reforms, the adoption of international standards, and active participation in the Bologna Process. The study’s primary objective is to enhance the quality, competitiveness, and accessibility of higher education through systemic, evidence-based transformations, grounded in a critical assessment of ongoing developments. Higher education plays a decisive role in shaping the country’s economic and social advancement. The paper evaluates the current state of Georgia’s higher education system. As
2026-03-12

Journal number 1 ∘ Gulshen Zaid Yuzbashieva ∘ Gulnar Jafar Qadirova ∘

INNOVATIVE POLICY AND STATE SUPPORT IN AZERBAIJAN

doi.org/10.52340/eab.2026.18.01.04. In the Republic of Azerbaijan, efforts to activate internal drivers of economic growth are unfolding against a backdrop of rising uncertainty and instability in global economic development. Within this context, the emphasis is placed not on gross growth, but on inclusive economic growth. Inclusive growth permeates, to varying degrees, all internal processes and the broader socio-economic environment. It is important to note that the pronounced differentiation among economic sectors in generating gross value added highlights the relevance of indicators that capture the balanced distribution of growth across key structural components. In this regard, measures of inclusive growth are as significant as GDP growth rates. Such measures have become indispensable for all countries striving for sustainable development under conditions of uncertainty. Moreover, it is worth underscoring that dynamic growth rates, when combined with structural transformation
2026-03-12

Journal number 1 ∘ Elene Kobakhidze ∘

Waste Management as a Prerequisite for the Development of the Green Economy in Georgia

doi.org/10.52340/eab.2026.18.01.05. This article examines the current state of the waste management system in Georgia within the broader context of green economy development and sustainable development goals. Waste management is approached as a multidimensional challenge that combines ecological responsibility with economic rationality. From an environmental standpoint, inefficient waste management contributes to land, water, and air pollution, greenhouse gas emissions, and long-term ecological degradation. From an economic standpoint, waste is increasingly regarded as a resource within the circular economy model, where materials are reused, recycled, or recovered to reduce dependence on primary resources and enhance economic efficiency. The theoretical foundation of this study rests on the principles of the green and circular economy. The green economy emphasizes sustainable growth, resource efficiency, and environmental protection, while the circular economy advocates for
2026-03-12

Journal number 1 ∘ Raqif X. Gasimov ∘ Gunay P. Papakhova ∘

HUMAN RESOURCES PLANNİNG IN LOCAL GOVERNMENTS IN AZERBAİJAN: A STUDY IN THE NORTHWESTERN REGİON

doi.org/10.52340/eab.2026.18.01.06. This study aims to provide a general assessment of human resource planning within both the central administration and local administrations in the Northwestern region of Azerbaijan. The Northwestern region is one of the country’s most geographically and culturally rich areas. It encompasses important cities and provinces such as Zakatala, Sheki, Gakh, Balaken, and Gabala, and is a popular destination for both domestic and international tourists thanks to its natural beauty, historical landmarks, and cultural heritage. In the early years of independence, Azerbaijan incorporated the concept of local government – an essential indicator of a modern state – into its administrative structure. On December 12, 1999, the country held its first local elections. Alongside the governorship (executive authority) system, the municipality system was introduced. Members of local councils are elected by citizens and tasked with delivering
2026-03-12

Journal number 1 ∘ Gulnazi Erkomaishvili ∘

Artificial Intelligence - An Innovative Tool for Entrepreneurship Development

doi.org/10.52340/eab.2026.18.01.07. The paper explores the role of Artificial Intelligence (AI) as an innovative driver of entrepreneurship in the era of digital transformation. It emphasizes that modern companies are constantly seeking ways to gain a competitive edge. AI offers substantial support to startups and small- to medium-sized enterprises by enhancing competitiveness, reducing costs, and fostering innovation. The study examines both the advantages and challenges of adopting AI in entrepreneurial activities. In Georgia, the AI sector is developing rapidly, with clear signs of integration into business processes, growing consumer interest, and increasing startup activity. At present, AI is most actively applied in marketing, finance, e-commerce, and digital services—industries that already rely on data-driven workflows, possess strong digital infrastructure, and embrace technological innovation. Companies employ AI for advertising optimization, customer behavior
2026-03-12

Journal number 1 ∘ Tea Munjishvili ∘ Leila Kadagishvili ∘ Shota Shaburishvili ∘ Irakli gazdeliani ∘ David Sikharulidze ∘ Zviad Sigua ∘

Digitalization and Foreign Trade Resilience under Geopolitical Shocks: The Case of Georgia

doi.org/10.52340/eab.2026.18.01.08. This study examines how digitalization and geopolitical shocks interact to shape Georgia’s foreign trade dynamics and transit resilience within today’s fragmented global environment. The accelerating digitalization of international trade has fundamentally transformed the mechanisms through which trade flows are generated, transmitted, and stabilized – particularly under conditions of geopolitical conflict, sanctions, and supply-chain disruptions. The Russia–Ukraine war has sharply heightened transportation risks, disrupted Black Sea logistics, and accelerated the reconfiguration of Eurasian trade corridors, positioning countries such as Georgia in a strategically sensitive yet potentially advantageous role. In this context, geographic location alone is no longer sufficient to secure sustainable economic benefits; instead, trade resilience increasingly depends on institutional efficiency, digital infrastructure, and the
2026-03-12

Journal number 1 ∘ Simon Gelashvili ∘ Marine Mindorashvili ∘ Nino Abesadze ∘ Lia Dzebisauri ∘

Economic and Statistical Study of Alcoholic Beverage Consumption among Students in Georgia

doi.org/10.52340/eab.2026.18.01.09. The article addresses one of the pressing global challenges of modern times – the consumption of alcoholic beverages among young people. Georgia is no exception to this trend, which underscores the undeniable relevance of the topic. The study aims to conduct a comprehensive economic and statistical analysis of alcohol consumption among students and its impact on their socio-economic status. To achieve this objective, the following tasks were undertaken:Development of a detailed research questionnaire;• Collection of data and establishment of the necessary information base;• Organization of the collected data into separate blocks according to various statistical characteristics;• Identification of factors influencing students’ alcohol consumption and assessment of their impact;• Calculation of relevant quantitative and qualitative indicators;• Comparative analysis of the calculated indicators and
2026-03-12

Journal number 1 ∘ Tengiz Verulava ∘

Transformation of Pension Systems in the South Caucasus: A Comparative Analysis of Georgia, Armenia, and Azerbaijan

doi.org/10.52340/eab.2026.18.01.10. The present study offers a comprehensive comparative analysis of the pension systems in Georgia, Armenia, and Azerbaijan – three South Caucasus countries that have each experienced distinct welfare and economic transformations in the post-Soviet era. It situates these national pension reforms within the broader context of post-socialist welfare state restructuring and the pursuit of financial sustainability amid demographic pressures, labor market informality, and institutional constraints. Following the collapse of the Soviet Union, all three countries inherited a pay-as-you-go (PAYG) pension model, characterized by solidarity-based financing and universal state responsibility. While this framework initially ensured a basic level of income security for retirees, it quickly proved unsustainable due to fiscal limitations, declining formal employment, and demographic aging. As a result, the early 2000s and 2010s marked
2026-03-12

Journal number 1 ∘ Maya Gogokhia ∘

On the Issue of Investment Efficiency in Securities

doi.org/10.52340/eab.2026.18.01.11. A financial market is a specialized sphere of monetary operations where transactions channel surplus funds from households, corporations, and government entities into financial assets, benefiting the recipients. Its primary purpose is to ensure the steady flow of capital investments into enterprises within the real sector of the economy. Each year, countries increase their borrowing in financial markets. Most firms engaged in securities operations are well-established and hold strong positions in the stock industry. Nevertheless, the functioning of stock markets is ultimately shaped by diverse business sectors and government policies. Investors seek security, high returns, and liquidity for their investments, yet economic principles rarely allow these conditions to coexist fully. At present, foreign currency–denominated bonds, held by a broad range of investors, demonstrate significantly higher liquidity compared to bonds denominated in
2026-03-12

Journal number 1 ∘ Beka Darakhvelidze ∘

A Methodological Framework for Modified CAPM Estimation

doi.org/10.52340/eab.2026.18.01.12. This study addresses a critical gap in emerging market finance by systematically analyzing and comparing alternative methodological approaches for estimating each component of the Capital Asset Pricing Model (CAPM) in data-constrained environments. While the theoretical foundation of CAPM remains elegant and logically consistent, substantial debate persists among finance scholars regarding the optimal estimation methodology for each variable, The problem becomes more acute in developing markets where sovereign yields may embed default risk, equity indices may be illiquid or economically unrepresentative, and reliable time-series data may be scarce or structurally unstable. The framework presented here systematizes the selection and adjustment of each input variable under such constraints. Risk-free rates are constructed using either credit-rating-implied default spreads or market-based CDS spreads, with explicit discussion of reinvestment risk and
2026-03-12

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 1 ∘ Journal N1, 2026 content „ECONOMICS and BUZINESS“ VOLUM XVIII, N1, 2026 C O N T E N T ECONOMIC THEORY ◊ ECONOMIC POLICY Vladimer Papava, Elguja Mekvabishvili - The Evolution of the World Monetary Order from “Paris” to “Post-Jamaica” (Historical-Logical Analysis) Murman Tsartsidze, Irma Tkemaladze, Shota Gabadadze - Peculiarities in Implementing the Concept of Decent Work in Georgia: Challenges and Prospects Marina Chavleishvili - Higher Education System – Analysis, Problems, Challenges, and Solutions Gulshen Zaid Yuzbashieva, Gulnar Jafar Qadirova - Innovative Policy and State Support in Azerbaijan Elene Kobakhidze - Waste Management as a Prerequisite for the Development of the Green Economy in Georgia Raqif X. Gasimov, Raqif X. Gasimov – Human Resources Planning in Local Governments in Azerbaijan: A Study in the Horthwestern Region DIGITAL ECONOMY Gulnaz Erkomaishvili - Artificial Intelligence - An Innovative Tool for Entrepreneurship Development Tea Munjishvili, Shota Shaburishvili, Davit Sikharulidze, Leila kadagishvili, Irakli gazdeliani, Zviadi Sigua - Digitalization and Foreign Trade Resilience under Geopolitical Shocks: The Case of Georgia SECTORAL ECONOMICS Simon Gelashvili, Nino Abesadze, Lia Dzebisauri - Economic and Statistical Study of Alcoholic Beverage Consumption among Students in Georgia Tengiz Verulava - Transformation of Pension Systems in the South Caucasus: A Comparative Analysis of Georgia, Armenia, and Azerbaijan FINANCE and BANKING ◊ ACCAUNTING and AUDIT Maya Gogokhia - On the Issue of Investment Efficiency in Securities Beka Darakhvelidze - A Methodological Framework for Modified CAPM Estimation ANNIVERSARIES Professor Yuri Ananiashvili -75 Professor Ioseb Archvadze - 70 BRIGHT MEMORY Professor Ramaz Abesadze 2026-03-12 Journal number 1 ∘ Vladimer Papava ∘ Elguja Mekvabishvili ∘ The Genesis of the World Monetary Order from "Paris" to "Post-Jamaica" (Historical-Logical Analysis) doi.org/10.52340/eab.2026.18.01.01. journal N 1.2026 The article argues that the old world order is rapidly being replaced by a new one. The previous order, established after World War II, was shaped by the global rivalry between two superpowers with opposing political and socio-economic systems: The United States and the Soviet Union. In the early 1990s, the collapse of the USSR, and, with it, the so called “socialist camp,” gave rise to a unipolar world order dominated by the United States, replacing the former bipolar system. At the heart of any world order lies the global economic order, understood as the systemic unity of rules, laws, norms, and the supporting infrastructure of supranational organizations that define and regulate economic relations among states. The unipolar order that emerged carried a distinctly liberal character, sustained by a global economic framework rooted in free trade. The article conceptualizes the international economic order as the 2026-03-12 Journal number 1 ∘ Murman Tsartsidze ∘ Irma Tkemaladze ∘ Shota Gabadadze ∘ Peculiarities in Implementing the Concept of Decent Work in Georgia: Challenges and Prospects doi.org/10.52340/eab.2026.18.01.02. In the context of ongoing globalization and the digital transformation of the economy, the concept of enhancing "decent work and quality of life" has become particularly relevant for achieving sustainable and stable development. The evolution of labor relations – and especially the provision of decent working conditions – must play a crucial role in this process. This issue is especially pressing in Georgia, where widespread, chronic unemployment remains one of the most acute and persistent challenges, recognized as a major driver of poverty. Addressing these problems requires close attention to the recommendations of the International Labor Organization regarding labor market regulation and social and labor relations more broadly, as well as the proper fulfillment of obligations outlined in the Association Agreement with the European Union. The "Decent Work Concept," as a tool for implementing the global goals of the International 2026-03-12 Journal number 1 ∘ Marina Chavleishvili ∘ Higher Education System – Analysis, Problems, Challenges, and Solutions doi.org/10.52340/eab.2026.18.01.03. The article examines the challenges facing the higher education system and explores strategies for addressing them. Globalization, rapid technological progress, and the evolving labor market have created multifaceted and increasingly complex pressures on education. Over recent decades, Georgia has pursued extensive modernization in higher education, aiming to strengthen and improve overall system performance. These efforts include comprehensive reforms, the adoption of international standards, and active participation in the Bologna Process. The study’s primary objective is to enhance the quality, competitiveness, and accessibility of higher education through systemic, evidence-based transformations, grounded in a critical assessment of ongoing developments. Higher education plays a decisive role in shaping the country’s economic and social advancement. The paper evaluates the current state of Georgia’s higher education system. As 2026-03-12 Journal number 1 ∘ Gulshen Zaid Yuzbashieva ∘ Gulnar Jafar Qadirova ∘ INNOVATIVE POLICY AND STATE SUPPORT IN AZERBAIJAN doi.org/10.52340/eab.2026.18.01.04. In the Republic of Azerbaijan, efforts to activate internal drivers of economic growth are unfolding against a backdrop of rising uncertainty and instability in global economic development. Within this context, the emphasis is placed not on gross growth, but on inclusive economic growth. Inclusive growth permeates, to varying degrees, all internal processes and the broader socio-economic environment. It is important to note that the pronounced differentiation among economic sectors in generating gross value added highlights the relevance of indicators that capture the balanced distribution of growth across key structural components. In this regard, measures of inclusive growth are as significant as GDP growth rates. Such measures have become indispensable for all countries striving for sustainable development under conditions of uncertainty. Moreover, it is worth underscoring that dynamic growth rates, when combined with structural transformation 2026-03-12 Journal number 1 ∘ Elene Kobakhidze ∘ Waste Management as a Prerequisite for the Development of the Green Economy in Georgia doi.org/10.52340/eab.2026.18.01.05. This article examines the current state of the waste management system in Georgia within the broader context of green economy development and sustainable development goals. Waste management is approached as a multidimensional challenge that combines ecological responsibility with economic rationality. From an environmental standpoint, inefficient waste management contributes to land, water, and air pollution, greenhouse gas emissions, and long-term ecological degradation. From an economic standpoint, waste is increasingly regarded as a resource within the circular economy model, where materials are reused, recycled, or recovered to reduce dependence on primary resources and enhance economic efficiency. The theoretical foundation of this study rests on the principles of the green and circular economy. The green economy emphasizes sustainable growth, resource efficiency, and environmental protection, while the circular economy advocates for 2026-03-12 Journal number 1 ∘ Raqif X. Gasimov ∘ Gunay P. Papakhova ∘ HUMAN RESOURCES PLANNİNG IN LOCAL GOVERNMENTS IN AZERBAİJAN: A STUDY IN THE NORTHWESTERN REGİON doi.org/10.52340/eab.2026.18.01.06. This study aims to provide a general assessment of human resource planning within both the central administration and local administrations in the Northwestern region of Azerbaijan. The Northwestern region is one of the country’s most geographically and culturally rich areas. It encompasses important cities and provinces such as Zakatala, Sheki, Gakh, Balaken, and Gabala, and is a popular destination for both domestic and international tourists thanks to its natural beauty, historical landmarks, and cultural heritage. In the early years of independence, Azerbaijan incorporated the concept of local government – an essential indicator of a modern state – into its administrative structure. On December 12, 1999, the country held its first local elections. Alongside the governorship (executive authority) system, the municipality system was introduced. Members of local councils are elected by citizens and tasked with delivering 2026-03-12 Journal number 1 ∘ Gulnazi Erkomaishvili ∘ Artificial Intelligence - An Innovative Tool for Entrepreneurship Development doi.org/10.52340/eab.2026.18.01.07. The paper explores the role of Artificial Intelligence (AI) as an innovative driver of entrepreneurship in the era of digital transformation. It emphasizes that modern companies are constantly seeking ways to gain a competitive edge. AI offers substantial support to startups and small- to medium-sized enterprises by enhancing competitiveness, reducing costs, and fostering innovation. The study examines both the advantages and challenges of adopting AI in entrepreneurial activities. In Georgia, the AI sector is developing rapidly, with clear signs of integration into business processes, growing consumer interest, and increasing startup activity. At present, AI is most actively applied in marketing, finance, e-commerce, and digital services—industries that already rely on data-driven workflows, possess strong digital infrastructure, and embrace technological innovation. Companies employ AI for advertising optimization, customer behavior 2026-03-12 Journal number 1 ∘ Tea Munjishvili ∘ Leila Kadagishvili ∘ Shota Shaburishvili ∘ Irakli gazdeliani ∘ David Sikharulidze ∘ Zviad Sigua ∘ Digitalization and Foreign Trade Resilience under Geopolitical Shocks: The Case of Georgia doi.org/10.52340/eab.2026.18.01.08. This study examines how digitalization and geopolitical shocks interact to shape Georgia’s foreign trade dynamics and transit resilience within today’s fragmented global environment. The accelerating digitalization of international trade has fundamentally transformed the mechanisms through which trade flows are generated, transmitted, and stabilized – particularly under conditions of geopolitical conflict, sanctions, and supply-chain disruptions. The Russia–Ukraine war has sharply heightened transportation risks, disrupted Black Sea logistics, and accelerated the reconfiguration of Eurasian trade corridors, positioning countries such as Georgia in a strategically sensitive yet potentially advantageous role. In this context, geographic location alone is no longer sufficient to secure sustainable economic benefits; instead, trade resilience increasingly depends on institutional efficiency, digital infrastructure, and the 2026-03-12 Journal number 1 ∘ Simon Gelashvili ∘ Marine Mindorashvili ∘ Nino Abesadze ∘ Lia Dzebisauri ∘ Economic and Statistical Study of Alcoholic Beverage Consumption among Students in Georgia doi.org/10.52340/eab.2026.18.01.09. The article addresses one of the pressing global challenges of modern times – the consumption of alcoholic beverages among young people. Georgia is no exception to this trend, which underscores the undeniable relevance of the topic. The study aims to conduct a comprehensive economic and statistical analysis of alcohol consumption among students and its impact on their socio-economic status. To achieve this objective, the following tasks were undertaken:Development of a detailed research questionnaire;• Collection of data and establishment of the necessary information base;• Organization of the collected data into separate blocks according to various statistical characteristics;• Identification of factors influencing students’ alcohol consumption and assessment of their impact;• Calculation of relevant quantitative and qualitative indicators;• Comparative analysis of the calculated indicators and 2026-03-12 Journal number 1 ∘ Tengiz Verulava ∘ Transformation of Pension Systems in the South Caucasus: A Comparative Analysis of Georgia, Armenia, and Azerbaijan doi.org/10.52340/eab.2026.18.01.10. The present study offers a comprehensive comparative analysis of the pension systems in Georgia, Armenia, and Azerbaijan – three South Caucasus countries that have each experienced distinct welfare and economic transformations in the post-Soviet era. It situates these national pension reforms within the broader context of post-socialist welfare state restructuring and the pursuit of financial sustainability amid demographic pressures, labor market informality, and institutional constraints. Following the collapse of the Soviet Union, all three countries inherited a pay-as-you-go (PAYG) pension model, characterized by solidarity-based financing and universal state responsibility. While this framework initially ensured a basic level of income security for retirees, it quickly proved unsustainable due to fiscal limitations, declining formal employment, and demographic aging. As a result, the early 2000s and 2010s marked 2026-03-12 Journal number 1 ∘ Maya Gogokhia ∘ On the Issue of Investment Efficiency in Securities doi.org/10.52340/eab.2026.18.01.11. A financial market is a specialized sphere of monetary operations where transactions channel surplus funds from households, corporations, and government entities into financial assets, benefiting the recipients. Its primary purpose is to ensure the steady flow of capital investments into enterprises within the real sector of the economy. Each year, countries increase their borrowing in financial markets. Most firms engaged in securities operations are well-established and hold strong positions in the stock industry. Nevertheless, the functioning of stock markets is ultimately shaped by diverse business sectors and government policies. Investors seek security, high returns, and liquidity for their investments, yet economic principles rarely allow these conditions to coexist fully. At present, foreign currency–denominated bonds, held by a broad range of investors, demonstrate significantly higher liquidity compared to bonds denominated in 2026-03-12 Journal number 1 ∘ Beka Darakhvelidze ∘ A Methodological Framework for Modified CAPM Estimation doi.org/10.52340/eab.2026.18.01.12. This study addresses a critical gap in emerging market finance by systematically analyzing and comparing alternative methodological approaches for estimating each component of the Capital Asset Pricing Model (CAPM) in data-constrained environments. While the theoretical foundation of CAPM remains elegant and logically consistent, substantial debate persists among finance scholars regarding the optimal estimation methodology for each variable, The problem becomes more acute in developing markets where sovereign yields may embed default risk, equity indices may be illiquid or economically unrepresentative, and reliable time-series data may be scarce or structurally unstable. The framework presented here systematizes the selection and adjustment of each input variable under such constraints. Risk-free rates are constructed using either credit-rating-implied default spreads or market-based CDS spreads, with explicit discussion of reinvestment risk and 2026-03-12