On Supply-Side Inflation and Some Unconventional Indicators for Measuring Inflation

The paper provides an analysis of the inflation problem caused by the COVID-19 pandemic and continued by Russia’s war against Ukraine, through different channels, including global supply chain disruption, increased governmental spending, decreased supply of goods and, etc. Inflation, which in this case was supply-side driven inflation, caused serious debates in terms of how to tackle the challenge. Should central banks use their standard instruments and is it enough to use the old-fashioned inflation index to create an economic recovery and anti-inflationary policies for different countries, especially when speaking about import-dependent, consumer-style developing countries? Herein, we analyze the most recent challenges of the inflationary process, starting from the point of how it launched and finishing with the issue of how to overcome this current crisis. Some unconventional macroeconomic indicators are also offered for governments and central banks for a better and more in-depth understanding of inflation and for the creation of better policy vis-à-vis inflation

Promoting fintech financing for SME in S. Caucasian and Baltic States, during the Covid-19 global pandemic

Purpose – to analyse the digitalization trends in the Central Caucasian (Georgia, Azerbaijan and Armenia) and Baltic States with the aim of reducing a financial gap for the Small and Medium size Enterprises in Georgia, Azerbaijan and Armenia. Research methodology – comparative analysis between Baltic and Caucasian countries are made to analyse the basic positions and farther development opportunities for Georgia, Azerbaijan and Armenia. Findings of the given paper – while SME sector crucially important contributor to employment, diversification and productivity in any country of the world and especially in developing ones, they still face significant credit constraints through traditional credit providing institutions. However, the trend is changing and modern digital technologies from the fintech area are providing new alternatives, which already had been widely used in Baltic, but still are waiting their chance in Georgia, Azerbaijan and Armenia, with different level of progress and readiness. Research limitations – some statistical data does not exist for all six countries or were possible to obtain for different periods of time. Lack of academic literature on fintech in Caucasian countries. Practical implications – It can provide a useful perspective for researchers, academics, investors, investment managers, decision-makers, and scientists. Originality/Value – The paper analyses three advanced European Union member state’s (Lithuania, Latvia and Estonia) fintech positions and perspectives as a model of development for three developing Caucasian states (Georgia, Azerbaijan and Armenia)

Entrepreneurial incentives among university students in Georgia and Portugal

The study of entrepreneurial incentives among students is a highly relevant issue because it is of utmost importance for the economic development of the country to cultivate generations of entrepreneurs who will create high-value technological startups and contribute to the transformation of Georgia into a technological hub, a goal that we have been calling a priority for years. In recent years, there has been a tendency among young adults to show entrepreneurial initiative, although this is modest compared to what could truly change the image of the country. Funds and angel investors have emerged in the country, ready to invest in interesting business projects with global potential. In this process, the role of universities could be invaluable. The primary obstacle that Georgia's and Portugal's education systems are still facing is incorporating entrepreneurial skills into formal and vocational education. Scant is the rundown of colleges that have coordinated this new test in their educational programs.The region is characterized by precarious and unsystematic skill-based professional schooling, reflecting inadequate funding initiatives lacking sustainability. The article studies the factors influencing students' entrepreneurial incentives in Georgia and Portugal, identifies the interests and opportunities of Georgian and Portuguese university students in starting a business, and discusses the best foreign practices for encouraging students' entrepreneurial activity. The article reports a study, based on a survey, which identified the main facilitating and hindering factors that influence students' entrepreneurial incentives. The paper also analyzes the environment supporting students' entrepreneurial activities in Georgia and Portugal, discusses the possibilities of finding financing, and identifies the main obstacles that students face when starting a business.info:eu-repo/semantics/publishedVersio

Economic cooperation between Central Caucasus, China, and EU, under COVID-19 challenges

Study analyses the China’s Belt and Road Initiative perspectives for EU and Central Caucasus countries of Georgia, Armenia and Azerbaijan, with the special focus on covid-19 global pandemic reality. Trade, investments and transit is considered as main factors of the given paper. At the same time, global competition for leadership, open and hidden trade and investment wars are taken into account. Study also suggest different alternative ways of including Central Caucasian states into the project as a corridor for China – EU connection. Coronomic challenges are considered as a new wave of challenge and at the same time as a new opportunity for all counterparts, depending on potential, vision and activities they will conduct in the nearest future

COVID-19 effect on FDI motivation and their impact on service sector: Case of Georgia

Based on the Scott-Kennel’s model of local industry upgrade through foreign direct investments, this paper analyses if investments are always positively benefiting the host economy, or if they are not promoting local/host economies at all, or to which exact level. This paper is focused on service sector oriented investments and answers the questions important to analyse for the successful investment policy creation, which could benefit both the local economy and foreign investors. In other words, only aggregated per year foreign investment numbers are not enough for the comprehensive picture creation and in some cases could even suggest incorrect strategic decisions. Research was done based on deep interviews with the top management of 20 different companies listed in top 200 FDI making companies in Georgia for the 2020 year. Paper considers the global pandemic reality and future perspectives

The Caucasus 3 plus the Baltic 3 and economic cooperation with China

This study analyses China’s One Belt, One Road (OBOR) initiative for the Baltic and South Caucasus countries. Trade, Foreign Direct Investments and transit potential are taken as main factors for the cooperation. A clash of China and the West in pursuing economic leadership is taken into account. The study suggests a new, alternative route for the OBOR initiative through the Caucasus, which has all the needed infrastructure and readiness for being started. Moreover, Georgia is not new to the EU preferences, it has experience of GSP+ and now the unique achievement of free trade regimes with the EU and China is also taken as an alternative route and an advantage for the Caucasus and the Baltic States. Keywords: 16+1 cooperation, Baltic States, BRI, Caucasus, FDI, international trade, OBO

Entrepreneurial Incentives Among University Students in Georgia and Portugal

The study of entrepreneurial incentives among students is a highly relevant issue because it is of utmost importance for the economic development of the country to cultivate generations of entrepreneurs who will create high-value technological startups and contribute to the transformation of Georgia into a technological hub, a goal that we have been calling a priority for years. In recent years, there has been a tendency among young adults to show entrepreneurial initiative, although this is modest compared to what could truly change the image of the country. Funds and angel investors have emerged in the country, ready to invest in interesting business projects with global potential. In this process, the role of universities could be invaluable. The primary obstacle that Georgia’s and Portugal’s education systems are still facing is incorporating entrepreneurial skills into formal and vocational education. Scant is the rundown of colleges that have coordinated this new test in their educational programs