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- Ivane Javakhishvili Tbilisi State University
Recent Submissions
The analysis of Georgia’s participation in global value chains
(Alexandru Ioan Cuza University Press, 2026) Jamagidze, Lela; Lekashvili, Eka
The paper aims to study Georgia’s positions in global value chains (GVCs), which represents a connecting channel to international markets and sources of productivity improvement. It analyzes backward and forward linkages and value-added trade to identify the main determinants of GVC integration. The structural gravity model for exported value-added is applied to the panel of 26 countries over 1997-2022, incorporating standard gravity components and additional policy-related and sector-specific regressors. The results show that Georgia’s overall position in GVCs is weak and is under the influence of short-term factors rather than deep integration forces. The analysis of the determinants of value-added trade has demonstrated that larger GDP and the quality of human capital are powerful drivers of Georgia’s participation in GVCs. The findings suggest that Georgia’s priorities should involve industrial policies targeted at high value-added creation, investments in skills development and industrial upgrading for enhanced GVC integration.
Development of Industrial sector in the EU and the Candidate countries
(Ivane Javakhishvili Tbilisi State University, Paata Gugushvili Institute of Economics, 2024) Jamagidze, Lela
Industrial sector affects economic development in multiple directions. Although currently services take the largest share of the employment and GDP in developed economies, their growing interest towards industrialization and industrial policy issues is obvious. Industrialization is also present in the development global agenda, as it is included in Sustainable Development Goals. Because of its close connections with other sectors of the economy, industry and especially manufacturing makes a positive influence on productivity, employment and economic growth. Many innovations and technologies emerge in industrial sectors and have spillover effects on other branches of the economy, including ser-vices. Another advantage of industrial development in related to diversification, which makes an economy more resilient against internal or external shocks.
In the EU industry accounts approximately 20% of the economy and creates 53 million jobs. The goal of the present paper is to analyze the state of the industrial sector in the EU and the candidate countries. It aims to study further approximation and integration prospects. The research is focused on the contribution of industrial sector development in fulfilling the economic criterion of accession, namely, in enhancing the capacity to cope with competitive pressure and market forces within the Union. Simultaneously it can con-tribute to the enhancement of international competitiveness of the candidate countries.
The industrial strategy of the EU comprises both horizontal and vertical measures. They aim at supporting more sustainable, resilient, green and globally competitive economy. The industrial strategy is designed to enhance single market, support EU strategic autonomy and ensure twin transition through green and digital transformation.
Candidate countries need actions that are compatible with the EU industrial strategy. Step by step they have to support technology upgrading within industrial value chains, enhance innovative small and medium businesses and carry out structural reforms for the green and digital transformation. One of the essential steps is to narrow the existing gap with the average EU R&D funding.
In order to make a comparative analysis of the industrial sector in the EU and the candidate countries we rely on industrial value added, labor productivity and manufacturing export data. Comparative performance of the industrial sector is assessed by using panel index numbers, which reveal the position of the individual countries towards each other as well as through 2014-2023 years. The data are obtained from Eurostat, World Development Indicators and national statistics offices of the respective countries.
Compared to the EU, the pace of structural transformation has been slower in the candidate countries, therefore they have lower share of industrial sector in their economies. Candidate countries also lag behind the EU by industrial labor productivity. Thus they need to continue structural reforms in order to make use of the industrial growth potential and narrow the gap with the EU industrial development.
According to the panel index numbers of manufacturing exports, Georgia had weak positions during 2015-2021. However for the last two years manufacturing exports has improved. Better performance of exports compared to industrial production indicators can possibly be explained by re-export, rather than the development of the local production. Because the share of industry in Georgia’s GDP and employment is still low, also medium and high technology goods are weakly represented in manufacturing exports, Georgia’s structural and industrial policies should target high value-added industrial sub-sectors.
Non-Tariff measures and Georgia-EU trade integration prospects
(Ministry of Education and Science of Ukraine National Aerospace University named after N. Zhukovsky “Kharkiv Aviation Institute”, Uzhhorod Institute of Trade and Economics of Kyiv National University of Trade and Economics, VUZF University of Finance, Business and Entrepreneurship (Bulgaria), Wyższa Szkoła Społeczno-Gospodarcza w Przeworsku (Polska), 2020) Jamagidze, Lela
The goal of the present paper is to analyze non-tariff measures
(NTMs) and Georgia-EU trade integration prospects. It is focused on
bilaterally applied technical barriers to trade (TBT) and Sanitary and
phytosanitary SPS measures with their implications for trade flows. The findings show that although active exporters do not find SPS and TBT measures restrictive for their trade transactions, they seem costly for potential exporters. Therefore, Georgia needs to be focused more on behind the border infrastructure of trade while keeping going along the approximation path. Harmonization in the areas of SPS and TBT will enhance trade integration prospects for the potential small and medium-sized exporters.
Impact of loyalty programs on building long-term customer relationships in Georgia: an empirical analysis
(Council of Industrial Innovation and Research (CIIR), 2026) Seturi, Maia
The research presented in the article examines the role of loyalty programs in establishing long-term relationships with customers. In particular, the nature, goals and role of loyalty programs in establishing long-term relationships with customers are studied. Loyalty programs are a powerful tool that serves not only to retain customers, but also to manage their behavior and steadily grow the business. Since satisfied customers have a positive effect on maintaining and growing company revenues, attention is increasing towards relationship marketing. The issue of selecting effective means to retain existing customers has become increasingly relevant. The theoretical part of the research is based on marketing concepts, theories and principles, the main of which is relationship marketing. The practical part of the article includes an analysis of loyalty programs of companies operating in various sectors of the Georgian market. The main emphasis is placed on customer attitudes towards various types of loyalty programs and their tools, the benefits they receive and changes in their behavior. The research uses quantitative research methods. The results of the study indicate that properly planned and technologically sound loyalty programs significantly increase customer engagement, satisfaction, customer lifetime value (CLV) and strengthen their emotional connection with the brand. The work is of practical importance for marketing specialists and companies that aim to achieve greater success in the market and develop customer-oriented strategies and tactics. The study showed that not only material incentives, but also emotional motivators, such as status, exclusivity and individual approach, have a significant impact on customer behavior. It was proven that properly designed loyalty programs reduce the likelihood of a customer switching to another company.
სამხედრო ქრონიკიდან იმპერიულ პროექტამდე: საქართველო 1723-1724 წლების გერმანულ პრესაში
(2026) კანდელაკი, დალი / Kandelaki, Dali
Reports concerning Georgia published in the German press in 1723-1724 reflected not only military and political events, but also the processes through which the Caucasus became part of European political thought. The materials published in the newspaper “Staats- und gelehrte Zeitung des holsteinischen unpartheyischen Correspondenten” demonstrate particularly clearly how operational information in the form of military chronicles was transformed into a means of explaining Russian imperial policy. Reports disseminated in the context of the Russian-Ottoman-Persian confrontation simultaneously reflected the Caucasian policy of the Russian Emperor Peter I, Russian military activity, and Georgia’s place within the regional balance of power. The analysis of these reports demonstrates that periodical publications did not merely serve the function of transmitting information; they also created political and symbolic representations through which European readers perceived Georgia, the Caucasus, and Russia’s southern policy. Particular attention is devoted to the sources of information, narrative structures, forms of transmission, and interpretative models that gradually transformed military reports into elements of a broader geopolitical vision. In this process, Georgia initially appeared as an area of military operations and troop movements, but later came to be represented as a strategically important territory whose control was connected to Russia’s plans for expansion toward the south. From this perspective, early eighteenth-century German periodicals constitute an important source for studying the transformation of information, political evaluation, and the history of European perceptions of Georgia.