According to a review of "Central Banks: Monthly Balance Sheets", prepared by the consulting company Yardeni Research, Inc., the assets of the four leading central banks in the world - the US Federal Reserve (FED), the European Central Bank (ECB), the Bank of Japan and the People's Bank of China (PBOC), increased by 4.8 times over the specified period. Consequently, the liabilities of the big four central banks increased by 4.8 times. As it is known, the bulk of the Central Bank's liabilities is money issued by central banks (in the form of cash and deposits, on which commercial banks place their funds). Therefore, the money supply issued by four banks in a quarter of a century has also increased by 4.8 times. The FED was especially distinguished by the fact that it began to sharply increase the issue of money in the midst of the financial crisis of 2008-2009. This was done under the flag of "quantitative easing" (QE). There were three "quantitative easing" programs, the last one ended in 2014. However, when the US declared a "pandemic" and began to impose quarantine restrictions, the Fed's printing press was again launched at full capacity. Now the Fed buys $ 120 billion a month in the securities market ($ 80 billion in US Treasury securities and another $ 40 billion in mortgage securities). Accordingly, the dollar supply is increasing by the same amount every month. The Bank of Japan is on the second place in terms of the growth rate of assets (and money supply). It began to build up assets and money supply earlier than other leading central banks, from the end of the 20th century to the beginning of the 21st century. At the end of February 2021, the picture has changed radically. We see a rapid rise in the value of the indicator at the Bank of Japan, at the turn of 2018-2019. It crossed the 100% bar. Now its assets are equal to 127.4% of GDP. The indicators of the relative level of assets of the Fed and the ECB have grown very much. But the Central Bank of China has reduced the relative value of its assets by about a third. This is both the result of curbing the activity of the Chinese Central Bank and the fact that China has experienced high rates of GDP growth. As for the other three leading central banks, their policy of increasing money supply will continue. The head of the US Federal Reserve, Jerome Powell, makes it clear that the US Central Bank, at least until the end of the year, will continue to buy securities in the same volumes (that is, $ 120 billion a month). ECB President Christine Lagarde said in March that the bank would accelerate asset purchases in the coming months under the Pandemic Emergency Purchase Program (PEPP). The volume of this program is 1.85 trillion EUR. In addition, the main ECB repurchase program continues to operate. Other central banks that are not included in the survey by Yardeni Research, Inc. are also pursuing an asset buildup course. Among them are the Bank of England and the Swiss National Bank. Leading
根据咨询公司Yardeni Research, Inc.编制的《央行:月度资产负债表》的回顾，世界四大央行——美联储(FED)、欧洲央行(ECB)、日本银行和中国人民银行(PBOC)的资产在指定时期增加了4.8倍。结果，四大央行的负债增加了4.8倍。众所周知，中央银行的大部分负债是中央银行发行的货币(以现金和存款的形式，商业银行将资金存放在存款上)。因此，四家银行在四分之一世纪里发行的货币供应量也增加了4.8倍。在2008-2009年金融危机期间，美联储开始大幅增加货币发行量，这一点尤为突出。这是在“量化宽松”(QE)的旗帜下完成的。有三次“量化宽松”计划，最后一次于2014年结束。然而，当美国宣布“大流行”并开始实施隔离限制时，美联储的印钞机再次开足了马力。现在，美联储每月在证券市场购买1200亿美元(其中800亿美元是美国国债，另外400亿美元是抵押贷款证券)。因此，美元供应量每月都在以同样的幅度增加。就资产(和货币供应)增长率而言，日本央行(Bank of Japan)排名第二。从20世纪末到21世纪初，它开始比其他主要央行更早地积累资产和货币供应。到2021年2月底，情况发生了根本性的变化。我们看到，在2018-2019年交替之际，日本央行的这一指标的价值迅速上升。它越过了100%的横条。现在它的资产相当于GDP的127.4%。美联储和欧洲央行相对资产水平的指标大幅增长。但中国央行已将其资产的相对价值降低了约三分之一。这既是抑制中国央行活动的结果，也是中国经历了高GDP增长率的事实。至于其他三个主要央行，它们增加货币供应的政策将继续下去。美联储主席杰罗姆·鲍威尔明确表示，至少在今年年底之前，美国央行将继续以同样的规模购买证券(即每月1200亿美元)。欧洲央行行长克里斯蒂娜•拉加德(Christine Lagarde)今年3月表示，欧洲央行将在未来几个月根据流行病紧急购买计划(PEPP)加速资产购买。该计划的规模为1.85万亿欧元。此外，欧洲央行的主要回购计划继续运作。Yardeni Research, Inc.调查中未包括的其他央行也在进行资产积累过程。其中包括英格兰银行和瑞士国家银行。世界主要央行在为失控的货币排放辩护时，将其称为“大流行”。创造的货币供应量越多，这种货币相对于竞争对手货币的汇率就越低。而低估本国货币汇率是增强本国企业国际竞争力的一种手段。然而，这种竞争可能导致竞争对手央行的货币崩溃
{"title":"ANTI-CRISIS POLICY OF THE LEADING CENTRAL BANKS AT THE PRESENT STAGE","authors":"Malkhaz Chikobava","doi":"10.35945/gb.2021.12.019","DOIUrl":"https://doi.org/10.35945/gb.2021.12.019","url":null,"abstract":"According to a review of \"Central Banks: Monthly Balance Sheets\", prepared by the consulting company Yardeni Research, Inc., the assets of the four leading central banks in the world - the US Federal Reserve (FED), the European Central Bank\u0000(ECB), the Bank of Japan and the People's Bank of China (PBOC), increased by 4.8 times over the specified period. Consequently, the liabilities of the big four central banks increased by 4.8 times. As it is known, the bulk of the Central Bank's liabilities is money\u0000issued by central banks (in the form of cash and deposits, on which commercial banks place their funds). Therefore, the money supply issued by four banks in a quarter of a century has also increased by 4.8 times. The FED was especially distinguished by the fact that it began to sharply increase the issue of money in the midst of the\u0000financial crisis of 2008-2009. This was done under the flag of \"quantitative easing\" (QE). There were three \"quantitative easing\" programs, the last one ended in 2014. However, when the US declared a \"pandemic\" and began to impose quarantine restrictions,\u0000the Fed's printing press was again launched at full capacity. Now the Fed buys $ 120 billion a month in the securities market ($ 80 billion in US Treasury securities and another $ 40 billion in mortgage securities). Accordingly, the dollar supply is increasing by the same amount every month. The Bank of Japan is on the second place in terms of the growth rate of assets (and money supply). It began to build up\u0000assets and money supply earlier than other leading central banks, from the end of the 20th century to the beginning of the 21st century. At the end of February 2021, the picture has changed radically. We see a rapid rise in the value of the indicator at the Bank of Japan, at the turn of 2018-2019. It crossed the 100% bar. Now its assets are equal to 127.4% of GDP. The indicators of the relative level of assets of the Fed and the ECB have grown very much. But the Central Bank of China has reduced the relative value of its assets by about a third. This is both the result of curbing the activity of the Chinese Central Bank and the fact that China has experienced high rates of GDP growth.\u0000As for the other three leading central banks, their policy of increasing money supply will continue. The head of the US Federal Reserve, Jerome Powell, makes it clear that the US Central Bank, at least until the end of the year, will continue to buy securities in the same volumes (that is, $ 120 billion a month). ECB President Christine Lagarde said in March that the bank would accelerate asset purchases in the coming months under\u0000the Pandemic Emergency Purchase Program (PEPP). The volume of this program is 1.85 trillion EUR. In addition, the main ECB repurchase program continues to operate.\u0000Other central banks that are not included in the survey by Yardeni Research, Inc. are also pursuing an asset buildup course. Among them are the Bank of England and the Swiss National Bank.\u0000Leading","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126616444","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In the 50s and 60s of the twentieth century, when a proper parity was established in the economic rivalry between the capitalist and socialist systems, the economists and sociologists in the bourgeois reformist current formulated the theory of convergence (“convergence” comes from Latin convergere - from con- ‘together’ + vergere - ‘incline’). Convergence implies to merge, to bring two different socio-economic systems (capitalism and communism) together and to create a common techno-industrial system. Convergence involves similarity and integration of some characteristic features of different social and political systems and their structures, which gradually become similar and by means of interrelationship, cooperation and mutual understanding overcome the obstacles and acquire common character and become especially active in the conditions of scientific and technical development, internationalization and globalization until they create a new type, mixed, i.e. hybrid society, which includes the positive features of both capitalism and socialism. The global problems common to all mankind must be solved according to the above said.
{"title":"MODERN ASPECTS OF CONVERGENCE THEORY","authors":"Jemal Kharitonashvili","doi":"10.35945/gb.2021.12.007","DOIUrl":"https://doi.org/10.35945/gb.2021.12.007","url":null,"abstract":"In the 50s and 60s of the twentieth century, when a proper parity was established in the economic rivalry between the capitalist and socialist systems, the economists and sociologists in the bourgeois reformist current formulated the theory of convergence (“convergence” comes from Latin convergere - from con- ‘together’ + vergere - ‘incline’).\u0000Convergence implies to merge, to bring two different socio-economic systems (capitalism and communism) together and to create a common techno-industrial system. Convergence involves similarity and integration of some characteristic features of different social and political systems and their structures, which gradually become similar and by means of interrelationship, cooperation and mutual understanding overcome the obstacles and acquire common character and become especially active in the conditions of scientific and technical development, internationalization and globalization until they create a new type, mixed, i.e. hybrid society, which includes the positive features of both capitalism and socialism. The global problems common to all mankind must be solved according to the above said.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128474709","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The COVID-19 pandemic has caused an economic crisis in almost every country in the world and has exacerbated economic, social, cultural, legal, educational, and other problems. Artificial intelligence, as the technology of the future, offers new ways to solve the problems of the post-pandemic period, to make technological decisions, to develop business processes using modern innovative advances, to improve management processes, to improve medical services opportunity etc. Artificial intelligence is a field of special interest for researchers, one of the promising technologies of modern digital culture, which seeks not only to understand the nature of intelligence but also to create artificial systems with intelligent behavior. The potential of artificial intelligence can be harnessed in healthcare, agriculture, finance, energy, communications, economics, cybersecurity, and many more. However, artificial intelligence is associated with many risks, such as its use for criminal purposes, loss of jobs, or potential replacement. The main goal of the research is to determine the possibilities of introducing artificial intelligence systems in Georgia in the post-pandemic period, to select innovative approaches to increase economic efficiency, and to find ways to solve the postpandemic socio-economic problem. In the scientific paper, to determine the possibility of using artificial intelligence in the post-pandemic period and indepth analysis of the current situation, both Georgian and foreign scientific literature, studies, and statistical data were studied. Using quantitative-statistical research methods, some conclusions and recommendations were developed based on the sharing of existing practices related to the use the artificial intelligence. Artificial intelligence plays a special role in the process of sustainable development of the post-pandemic economy and maximization of economic prosperity.
{"title":"POSSIBILITIES OF USING ARTIFICIAL INTELLIGENCE IN POST-PANDEMIC GEORGIA","authors":"G. Giguashvili, Tamar Makasarashvili","doi":"10.35945/gb.2021.12.011","DOIUrl":"https://doi.org/10.35945/gb.2021.12.011","url":null,"abstract":"The COVID-19 pandemic has caused an economic crisis in almost every country in the world and has exacerbated economic, social, cultural, legal, educational, and other problems. Artificial intelligence, as the technology of the future, offers\u0000new ways to solve the problems of the post-pandemic period, to make technological decisions, to develop business processes using modern innovative advances, to improve management processes, to improve medical services opportunity etc.\u0000Artificial intelligence is a field of special interest for researchers, one of the promising technologies of modern digital culture, which seeks not only to understand the nature of intelligence but also to create artificial systems with intelligent behavior.\u0000The potential of artificial intelligence can be harnessed in healthcare, agriculture, finance, energy, communications, economics, cybersecurity, and many more. However, artificial intelligence is associated with many risks, such as its use for criminal purposes, loss of jobs, or potential replacement. The main goal of the research is to determine the possibilities of introducing artificial intelligence systems in Georgia in\u0000the post-pandemic period, to select innovative approaches to increase economic efficiency, and to find ways to solve the postpandemic socio-economic problem.\u0000In the scientific paper, to determine the possibility of using artificial intelligence in the post-pandemic period and indepth analysis of the current situation, both Georgian and foreign scientific literature, studies, and statistical data were studied. Using quantitative-statistical research methods, some conclusions and recommendations were developed based on the sharing of existing practices related to the use the artificial intelligence. Artificial intelligence plays a special role in the process of sustainable development of the post-pandemic economy and maximization of economic prosperity.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"5 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124139219","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The main objective of the presented paper is to identify investment opportunities in the apple value chain and also to evaluate the specific apple project using the state programs/projects. The methodological part provides a financial evaluation of a specific business project, taking into account state funding programs/projects. Furthermore, general investment opportunities of apples are analyzed in the paper. In addition, in order to study the investment potential, the investment climate of Georgia and Georgia’s international ratings are discussed. A brief description and analysis of various state support projects are also provided. Additionally, an overview of local apples and the world market is given. Due to the climate conditions and soil types of Georgia, the production of intensive apple varieties has a great potential in the country. Promoting the cultivation of intensive apple orchards through the use of various state supporting programs/projects and full compliance with apple production technologies, Georgia will have potential to increase the average apple yield per hectare. It is important for Georgia to use the existing free trade relations with other countries and to diversify the apple export market, which will further increase its competitiveness. Based on the financial evaluation, key performance indicators are positive and beneficial for the investors, which should give the motivation to the investors to invest in the apple value chain. In the field of agriculture, the continuation of the implementation of various state co-financing projects/programs and their development will give additional motivation to local and foreign investors, which will further increase the competitiveness of Georgian apple value chain.
{"title":"APPLE PRODUCTION INVESTMENT OPPORTUNITIES IN GEORGIA AND GLOBAL CONTEXT","authors":"Ekaterine Zviadadze, Lasha Zivzivadze LASHA ZIVZIVADZE, Mikheili Kuchava","doi":"10.35945/gb.2021.12.028","DOIUrl":"https://doi.org/10.35945/gb.2021.12.028","url":null,"abstract":"The main objective of the presented paper is to identify investment opportunities in the apple value chain and also to evaluate the specific apple project using the state programs/projects. The methodological part provides a financial evaluation\u0000of a specific business project, taking into account state funding programs/projects. Furthermore, general investment opportunities of apples are analyzed in the paper. In addition, in order to study the investment potential, the investment climate of Georgia\u0000and Georgia’s international ratings are discussed. A brief description and analysis of various state support projects are also provided. Additionally, an overview of local apples and the world market is given. Due to the climate conditions and soil types of Georgia, the production of intensive apple varieties has a great potential in\u0000the country. Promoting the cultivation of intensive apple orchards through the use of various state supporting programs/projects and full compliance with apple production technologies, Georgia will have potential to increase the average apple yield per\u0000hectare. It is important for Georgia to use the existing free trade relations with other countries and to diversify the apple export market, which will further increase its competitiveness. Based on the financial evaluation, key performance indicators are positive and beneficial for the investors, which should give the motivation to the investors to invest in the apple value chain. In the field of agriculture, the continuation of the implementation of various state co-financing projects/programs and their development will give additional motivation to local and foreign investors, which will further increase the competitiveness of Georgian apple value chain.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"98 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116067365","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Entrepreneurial activity has always been a major factor in the socio-economic development of any country in the world. This is especially evident in the discussion of the problems of economic growth, when the efficiency of the functioning of the entrepreneurial sphere within the country clearly determines both the rates of economic growth and the state of the social sphere and the well-being of the people. It is noteworthy that in modern conditions, against the background of the high importance of the formation of the knowledge economy, the innovative aspect of entrepreneurial activity in the context of all business entities is gaining special urgency. The effectiveness of the whole innovation process depends on the effective functioning of knowledge-based entrepreneurship. The aim of the research is to identify the requirements of the entrepreneurial field for human capital skills, to identify the imbalances in the labor market, to determine the compliance of the skills required for the teaching and learning activities of high schools, to identify the existing challenges and to formulate separate recommendations. The research process used the methods of induction, deduction, qualitative, quantitative, comparison, statistical analysis, benchmarking. The processing of existing literature, retrieval of statistical data (including with the direct assistance of the National Statistics Office of Georgia), automatic download of data (so-called scraping) from various employment sites, conducting surveys and in-depth interviews, sorting and quantitative analysis of retrieved data were included in the own research. The consideration of expert opinions is within the research. Research has shown that when considering the skills of entrepreneurs, as a starting point, the entrepreneurial activity in a particular country and the requirements for its development should be considered. It should be noted, however, that the labor market may not be able to meet the needs of the entrepreneurial sector (employers). On the other hand, the perceptions of the entrepreneurial subjects themselves about the required skills are often limited and conditioned by the relatively short-term current perceptions of the modern technologies of the entrepreneurial activity itself. The research and the analysis of the positive practical experience of the developed countries of the world clearly showed that in this regard, close cooperation with universities in the field of entrepreneurship in the form of entrepreneurship training and short-term courses will be effective. The involvement and support of the state in the development and implementation of innovative entrepreneurial policies would also be important here.
{"title":"DEVELOPMENT OF ENTREPRENEURIAL ACTIVITY, LABOR MARKET AND MODERN CHALLENGES OF HIGHER EDUCATION","authors":"Givi Bedianashvili, Quji Bichia, E. Natsvlishvili","doi":"10.35945/gb.2021.12.002","DOIUrl":"https://doi.org/10.35945/gb.2021.12.002","url":null,"abstract":"Entrepreneurial activity has always been a major factor in the socio-economic development of any country in the world. This is especially evident in the discussion of the problems of economic growth, when the efficiency of the functioning of the entrepreneurial sphere within the country clearly determines both the rates of economic growth and the state of the social sphere and the well-being of the people. \u0000It is noteworthy that in modern conditions, against the background of the high importance of the formation of the knowledge economy, the innovative aspect of entrepreneurial activity in the context of all business entities is gaining special urgency.\u0000The effectiveness of the whole innovation process depends on the effective functioning of knowledge-based entrepreneurship.\u0000The aim of the research is to identify the requirements of the entrepreneurial field for human capital skills, to identify the imbalances in the labor market, to determine the compliance of the skills required for the teaching and learning activities of high\u0000schools, to identify the existing challenges and to formulate separate recommendations.\u0000The research process used the methods of induction, deduction, qualitative, quantitative, comparison, statistical analysis,\u0000benchmarking. The processing of existing literature, retrieval of statistical data (including with the direct assistance of the National Statistics Office of Georgia), automatic download of data (so-called scraping) from various employment sites, conducting surveys and in-depth interviews, sorting and quantitative analysis of retrieved data were included in the own research. The consideration of expert opinions is within the research.\u0000\u0000Research has shown that when considering the skills of entrepreneurs, as a starting point, the entrepreneurial activity in a particular country and the requirements for its development should be considered. It should be noted, however, that the labor\u0000market may not be able to meet the needs of the entrepreneurial sector (employers).\u0000On the other hand, the perceptions of the entrepreneurial subjects themselves about the required skills are often limited and conditioned by the relatively short-term current perceptions of the modern technologies of the entrepreneurial activity itself.\u0000The research and the analysis of the positive practical experience of the developed countries of the world clearly showed that in this regard, close cooperation with universities in the field of entrepreneurship in the form of entrepreneurship training\u0000and short-term courses will be effective. The involvement and support of the state in the development and implementation of innovative entrepreneurial policies would also be important here.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121541872","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The findings presented in this article are to some extent continuation of the previous studies done by Georgian authors on the economy of Georgia using CGE models. The main instrument used in our research is based on a standard model tailored by Hosoe (Hosoe, 2004) to specifics of open small economy and is its modification of a certain kind. Two types of factors of production are used in this model to produce goods and services: labour and capital. The model also includes four types of commodities and production activities: agriculture, industry, construction and services. Under the necessary assumptions and restrictions, our model is a system composed of 99 equations and as many of endogenous variables. 36 of these equations correspond to the peculiarities of domestic production; 13 of them describe the government behavior; 4 characterize the investment demand function; The other 46 equations represent the behavioral characteristics of government, households, and the external sector. The social accounting matrix corresponding to the state of the economy of Georgia in 2019 is specially constructed for our research. To build it, we used the information contained in the Geostat Supply and Use tables (SUT), separate aggregates of national accounts, balance of payments, consolidated budget, and labor force survey data. Parameters of CGE model are calibrated based on the social accounting matrix. For this purpose, 2019 is considered as a base year and it is assumed that at that time economy of Georgia was in equilibrium. To define units of measurement for commodities and factors of production we set all prices of initial equilibrium to be equal to 1. Using our estimated model we arrange three different scenarios for the Georgian economy to find out what could have happened after implementing certain economic policies under ceteris paribus. According to the first scenario, the initial equilibrium of the economy is determined as of 2019 and the rate of indirect taxes is reduced by 10%. In the second scenario, we assume that the Georgian lari, has depreciated by 15% against the US dollar under ceteris paribus and we examine the expected results of the event. Lastly, in the third scenario, we assume under ceteris paribus that export increases by 20% and determine the aftereffects of export incentives.
{"title":"ESTIMATION OF THE POLICY EFFECTS USING COMPUTABLE GENERAL EQUILIBRIUM MODEL\u0000(THE CASE OF GEORGIA)","authors":"Iuri Ananiashvili, Natia Matsiashvili","doi":"10.35945/gb.2021.12.018","DOIUrl":"https://doi.org/10.35945/gb.2021.12.018","url":null,"abstract":"The findings presented in this article are to some extent continuation of the previous studies done by Georgian authors on the economy of Georgia using CGE models. The main instrument used in our research is based on a standard model tailored by Hosoe (Hosoe, 2004) to specifics of open small economy and is its modification of a certain kind. Two types of factors of production are used in this model to produce goods and services: labour and capital. The model also includes four types of commodities and production activities: agriculture, industry, construction and services. Under the necessary assumptions and restrictions, our model is a system composed of 99 equations and as many of endogenous variables. 36 of these equations\u0000correspond to the peculiarities of domestic production; 13 of them describe the government behavior; 4 characterize the investment demand function; The other 46 equations represent the behavioral characteristics of government, households, and\u0000the external sector. The social accounting matrix corresponding to the state of the economy of Georgia in 2019 is specially constructed for our research. To build it, we used the information contained in the Geostat Supply and Use tables (SUT), separate aggregates of national accounts, balance of payments, consolidated budget, and labor force survey data. Parameters of CGE model are calibrated based on the social accounting matrix. For this purpose, 2019 is considered as a base year and it is assumed that at that time economy of Georgia was in equilibrium. To define units of measurement for commodities and factors of production we set all prices of initial equilibrium to be equal to 1.\u0000Using our estimated model we arrange three different scenarios for the Georgian economy to find out what could have happened after implementing certain economic policies under ceteris paribus.\u0000According to the first scenario, the initial equilibrium of the economy is determined as of 2019 and the rate of indirect taxes is reduced by 10%. In the second scenario, we assume that the Georgian lari, has depreciated by 15% against the US dollar under\u0000ceteris paribus and we examine the expected results of the event. Lastly, in the third scenario, we assume under ceteris paribus that export increases by 20% and determine the aftereffects of export incentives.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"135 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116077548","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Tax administrations play a big role in terms of economic development of the country. Each reform or change implemented by them leave significant imprint on shaping the business environment. Without adopting a fair tax policy, progress in business, as well as in economy is unachievable. Fulfilment of commitments under the cooperation with EU, represents the state priority. Respectively, the best model of European practice is being established from 2021, further promoting the cooperation between Georgia and EU to move to another level. Considering the abovementioned circumstances, the value-added taxable objects have been substantively changed since 2021 in Georgia. The amendments aim to protect the tax payers’ rights, improve the tax regime and approximate it to the European Standard to the maximum extent possible. As a result of a qualitative research, the expectations both of field experts and business sector representatives towards the amendments made to value added tax since 2021 have been analyzed through an in-depth interview. The research was aimed at defining the further role of the amendments from the perspective of economic development. The impact of implemented reforms on the development of the country’s economy was assessed as the research object; and the amendments made to the Tax Code in 2021 and the mechanisms of its functioning were determined as the subject of the research.
{"title":"IMPACT OF AMENDMENTS MADE TO VALUE ADDED TAX IN 2021 ON PUBLIC AND BUSINESS SECTORS","authors":"Mamuka Lezhava","doi":"10.35945/gb.2021.12.024","DOIUrl":"https://doi.org/10.35945/gb.2021.12.024","url":null,"abstract":"Tax administrations play a big role in terms of economic development of the country. Each reform or change implemented by them leave significant imprint on shaping the business environment. Without adopting a fair tax policy, progress\u0000in business, as well as in economy is unachievable. Fulfilment of commitments under the cooperation with EU, represents the state priority. Respectively, the best model of\u0000European practice is being established from 2021, further promoting the cooperation between Georgia and EU to move to another level. Considering the abovementioned circumstances, the value-added taxable objects have been substantively changed\u0000since 2021 in Georgia. The amendments aim to protect the tax payers’ rights, improve the tax regime and approximate it to the European Standard to the maximum extent possible. As a result of a qualitative research, the expectations both of field experts and business sector representatives towards the amendments made to value added tax since 2021 have been analyzed through an in-depth interview. The research was aimed\u0000at defining the further role of the amendments from the perspective of economic development. The impact of implemented reforms on the development of the country’s economy was assessed as the research object; and the amendments made to the\u0000Tax Code in 2021 and the mechanisms of its functioning were determined as the subject of the research.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123897107","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
. The contemporary ultimate goal for any national government is to insure science-based economic development to achieve higher standard of leaving for citizens. Technological achievements are significant factors for modern global economic development. The new industrial revolution is fundamentally different from the old ones. The current one – named as fourth industrial revolution-creates the new environment of digital world. Fourth Industrial Revolution is the key issue on contemporary development agenda in academic, political and economic circles. Against the constant development of the information technologies, more and more business processes, products, goods, and services are impacted by innovations. This process entails the continuous evolution of business models, which eventually are becoming more and more digitalized. However, the digital development remains still an on-going process even in condition of COVID pandemic rather than a reality of every national economy. National Governments have to redouble their efforts to create better and larger infrastructure for the digital economy to grow. The ability of expanding business through physical infrastructure cannot be considered for granted in the digital economy. Not only physical infrastructure is enough for further digitalization. The creation of an ecosystem that systematically allows top innovations to be advanced globally still remains a key policy goals. Consequently, the national economic policy aiming at rising the welfare of the country has to pay particular attention to resource, mainly labour and capital, efficiency by providing basic infrastructure for facilitation of digitalization and increasing their expenditure on R&D to enable businesses and individuals effectively use novelties for creating competitive advantages to take stronger position in global markets.
{"title":"FOCUSING ON DIGITALIZATION: CORE FOR NATIONAL ECONOMIC POLICIES TO COMPETE GLOBALLY","authors":"Eka Sepashvili","doi":"10.35945/gb.2021.12.001","DOIUrl":"https://doi.org/10.35945/gb.2021.12.001","url":null,"abstract":". The contemporary ultimate goal for any national government is to insure science-based economic development to achieve higher standard of leaving for citizens. Technological achievements are significant factors for modern global\u0000economic development. The new industrial revolution is fundamentally different from the old ones. The current one – named as fourth industrial revolution-creates the new environment of digital world. Fourth Industrial Revolution is the key issue on\u0000contemporary development agenda in academic, political and economic circles. Against the constant development of the information technologies, more and more business processes, products, goods, and services are impacted by innovations.\u0000This process entails the continuous evolution of business models, which eventually are becoming more and more digitalized. However, the digital development remains still an on-going process even in condition of COVID pandemic rather than a reality of every national economy. National Governments have to redouble their efforts to create better and larger infrastructure for the digital economy to grow. The ability of expanding business through physical infrastructure cannot be considered for granted in the digital economy. Not only physical infrastructure is enough for further digitalization. The\u0000creation of an ecosystem that systematically allows top innovations to be advanced globally still remains a key policy goals. Consequently, the national economic policy aiming at rising the welfare of the country has to pay particular attention to\u0000resource, mainly labour and capital, efficiency by providing basic infrastructure for facilitation of digitalization and increasing their expenditure on R&D to enable businesses and individuals effectively use novelties for creating competitive advantages\u0000to take stronger position in global markets.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130782908","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The inevitable decline in the reserves of traditional energy sources is fostering interest in the development of renewable energy technologies around the world. The territorial characteristics and abundance of water resources in Georgia have great potential for the development of small hydropower, although the reality indicates a lack of high practical interest in this field. Comparative analysis of the characteristics of Georgian and foreign energy systems indicates the existence of a number of problems in the small hydropower industry in Georgia, which is related to the strategic understanding of the development prospects of this field at the state level. This situation naturally leads to an increase in investment risks. The aim of the article is to determine the conditions that will make the construction of small hydropower plants attractive and facilitate the formation of a relevant market through a geoeconomic understanding of the issue. The object of research is the opportunities and tools to improve Georgia's energy security, taking into account the geoeconomic factor of the state. The subject of the research is to discuss some of the current problems related to Georgia's energy security in the geo-economic context, in the context of hydropower. Institutional analysis, synthesis and comparison methods are used in the processing of the article.
{"title":"ENERGY SECURITY OF GEORGIA AS A COMPILER OF GEO-ECONOMICS (HYDROPOWER CONTEXT)","authors":"Otar Tukvadze, Ana Guchua, N. Chikhladze","doi":"10.35945/gb.2021.12.008","DOIUrl":"https://doi.org/10.35945/gb.2021.12.008","url":null,"abstract":"The inevitable decline in the reserves of traditional energy sources is fostering interest in the development of renewable energy technologies around the world. The territorial characteristics and abundance of water resources in Georgia have great potential for the development of small hydropower, although the reality indicates a lack of high practical interest in this field. Comparative analysis of the characteristics of Georgian and foreign energy systems indicates the existence of a number of problems in the small hydropower industry in Georgia, which is related to the strategic understanding of the development prospects of this field at the state level. This situation naturally leads to an increase in investment risks. The aim of the article is to determine the conditions that will make the construction of small hydropower plants attractive and facilitate the formation of a relevant market through a geoeconomic understanding of the issue.\u0000The object of research is the opportunities and tools to improve Georgia's energy security, taking into account the geoeconomic factor of the state. The subject of the research is to discuss some of the current problems related to Georgia's energy\u0000security in the geo-economic context, in the context of hydropower. Institutional analysis, synthesis and comparison methods are used in the processing of the article.","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130326291","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In terms of overcoming the socio-economic problems in Georgia, great importance is attached to efficient functioning of the labour market. It must ensure a radical change the sphere of social-labour relations, accordingly, efficient overcoming the chronic unemployment in the country and efficient employment of labour force. The results of the research confirms, that adequate labour market of normal market environment is still on the formation stage with serious problems and challenges which is developed in Georgia. In 1990s at the initial stage of formation the national labour market difficult economic situation which was in the country, give a push negative developments in the field of labour relations, among which before nowadays invincible challenge is the growing trend of informal employment. It can be said, that this one took on a large-scale character in the current period of financial and economic crisis caused by the global pandemic. In fact, the informal sector in Georgia has become an independent segment of the labour market, which has a significant impact on employment of the population, standard of living and on the overall process of economic development. Informal employment, as an important study socio-economic event and phenomenon, assess its level and scale, it can be said convincingly that it will not lose its relevance for many years. Negative consequences of informal employment, needs analysis and evaluation factors affecting the influx of economically active population into the informal sector of the labour market. Also its important discuss and evaluate the positive aspects of informal employment in the short term, which manifested in facilitation reasons socio-economic and psychological consequences of unemployment. In the work researched certain aspects of informal employment, analyzed its forms, faces, identified peculiarities of informal employment and rated its scale against the background of the global pandemic. Substantiated, that informal segment of the labour market requires depth research and evaluation. By the research identified the main factors for the growth and development of employment in the informal sector of economy in the Georgian labour market, from which we must distinguish: high levels and scale of poverty in the country, chronic unemployment and inefficient employment; insecurity social principle of justice in the field of employment; equal employment opportunities for job seekers; lack of proper conditions for equal realization of labour rights; population low availability on different types of labour market services and events, inadequate rates of economic development; reduced demand for labour, accordingly limited employment opportunities and prospects; low level and quality of development of vocational education system, which not fully focused on labour market demands, social protection of the unemployed, none of insurance mechanism; difficulties in training and retraining the unemployed; low level
{"title":"LABOUR MARKET AND PECULIARITIES OF INFORMAL EMPLOYMENT IN THE CONTEXT OF\u0000THE GLOBAL PANDEMIC","authors":"M. Tsartsidze, N. Latsabidze","doi":"10.35945/gb.2021.12.017","DOIUrl":"https://doi.org/10.35945/gb.2021.12.017","url":null,"abstract":"In terms of overcoming the socio-economic problems in Georgia, great importance is attached to efficient functioning of the labour market. It must ensure a radical change the sphere of social-labour relations, accordingly, efficient overcoming the chronic\u0000unemployment in the country and efficient employment of labour force. The results of the research confirms, that adequate labour market of normal market environment is still on the formation stage with serious problems and challenges which is developed in Georgia. In 1990s at the initial stage of formation the national labour market difficult economic situation which was in the country, give a push negative developments in the field of labour relations, among which before nowadays invincible challenge is the growing trend of informal employment. It can be said, that this one took on a large-scale character in the current period of financial and economic crisis caused by the global pandemic. In fact, the informal sector in Georgia has become an independent segment of the labour market, which has a significant impact on employment of the population, standard of living and on the overall process of economic development.\u0000Informal employment, as an important study socio-economic event and phenomenon, assess its level and scale, it can be said convincingly that it will not lose its relevance for many years. Negative consequences of informal employment, needs analysis and evaluation factors affecting the influx of economically active population into the informal sector of the labour market. Also its important discuss and evaluate the positive aspects of informal employment in the short term, which manifested in facilitation reasons socio-economic and psychological consequences of unemployment.\u0000In the work researched certain aspects of informal employment, analyzed its forms, faces, identified peculiarities of informal employment and rated its scale against the background of the global pandemic. Substantiated, that informal segment of the labour market requires depth research and evaluation. By the research identified the main factors for the growth and development of employment in the informal sector of economy in the Georgian labour market, from which we must distinguish: high levels and scale of poverty in the country, chronic unemployment and inefficient employment; insecurity social principle of justice in the field of employment; equal\u0000employment opportunities for job seekers; lack of proper conditions for equal realization of labour rights; population low availability on different types of labour market services and events, inadequate rates of economic development; reduced demand for labour, accordingly limited employment opportunities and prospects; low level and quality of development of vocational education system, which not fully\u0000focused on labour market demands, social protection of the unemployed, none of insurance mechanism; difficulties in training and retraining the unemployed; low level","PeriodicalId":272914,"journal":{"name":"Globalization and Business","volume":"63 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133130238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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