Modern globalization, human capital and economic growth in Georgia- macro aspect
Loading...
Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics
Abstract
In the modern global environment, the problems related to human capital and economic growth are gaining special importance. First of all, it is necessary to reveal the specificity of the globalization process itself, which determines the features of the functioning and development of the socio-economic systems of the world and individual countries, new requirements and challenges for human capital in the context of economic growth. In addition to the already existing features of globalization, it is necessary to take into account the specifics of small countries. The research showed us that it is acceptable to take into account that small countries are distinguished by different mechanisms of functioning and the development of socio-economic systems. The purpose of this study is to systematically analyze the relationship between human capital and economic growth in small countries, and to develop separate recommendations for Georgia, taking into account health, education, and skills.
The methods of induction, deduction, qualitative, quantitative, comparison, statistical analysis, and benchmarking were used in the research process. The research itself included the processing of existing literature, the search for statistical data (including with the direct help of the National Statistical Service of Georgia), the sorting and quantitative analysis of the data found, as well as the consideration of expert opinions within the research. Source of statistical data: International Monetary Fund (IMF), World Bank (WB), and United Nations (UN), as well as materials of the National Statistical Service of Georgia. Econometric research methods and Artificial Intelligence (AI), in particular, Machine Learning (ML) models were used.
The modern world globalization process encourages humanity to reconsider the role and importance of the entire system of upbringing and education in the development of public potential and the formation of a progressive civilized public mentality corresponding to the 21st century.
In the context of modern confrontational globalization, the concept of human capital is still relevant and of great importance. Human capital refers to people's knowledge, skills, experience, education, and talents that can be used to create tangible and intangible value.
Confrontational globalization is characterized by tense relations between states, competition, and political and economic conflicts. In such a situation, it is important to develop and attract highly qualified human capital to ensure competitiveness and sustainability in the face of global competition.
Human capital becomes the main resource that determines the economic growth and development of the country in the period of confrontational globalization. It is important to invest in education, science, and innovation to develop citizens' skills and knowledge. This will help create a highly qualified workforce that can compete in the global labor market.
In the context of confrontational globalization, the concept of human capital is still relevant and of great importance.
A preliminary empirical analysis based on econometric models shows that individual expenditures on the development of human capital cannot affect economic growth, which may be due to the nature of the long-term effects of expenditures, as well as the inefficiency of their structure.
It should be noted that it is important to develop social infrastructure, including the health system and social security, to ensure human well-being and development in the country. Healthy, educated, and motivated people can work efficiently and contribute more to the economic growth of the country.
Preliminary empirical analysis based on machine learning indicates the relatively weak role of the first level of professional and higher education in the incomes of workers, which indicates the relevance of the qualitative development of the relevant institutions;
The status and prestige of the professional education system, which is considered secondary compared to general and higher education, must be increased. It is less relevant to the population of the country and is considered a separate part of a single education system.
The educational reform, including the radical transformation of the professional education system, should be implemented in the complex of joint development of the secondary, professional, higher education and scientific education system. Due attention should be paid to further development of work-based vocational training methods;
In order to strengthen the impact of human capital on economic growth, it is important to develop the Georgian labor market, its infrastructure, and a unified information system. It is also necessary to develop a mechanism for labor market research, analysis, and forecasting, which is necessary for training professional staff corresponding to its requirements for the correct orientation of the professional and higher education system.
At the stage of confrontational globalization In the context of the growth of uncertainty, in the context of the qualitative development of human capital, it is very relevant to focus on the skills of the future in the training of entrepreneurs and specialists, as well as the development of adaptation skills, taking into account the best practices in the world.
Description
ბედიანაშვილი გ., ბიჭია ქ., ნაცვლიშვილი ე., 2021. სამეწარმეო აქტიურობის განვითარება, შრომის ბაზარი და უმაღლესი განათლების თანამედროვე გამოწვევები. გლობალიზაცია და ბიზნესი. 12, გვ. 21-31.
გიორხელიძე დ. 2018. ადამიანური კაპიტალის მდგომარეობა და ეკონომიკური ზრდის პრობლემები საქართველოში. გრი¬გოლ რობაქიძის სახელობის უნივერსიტეტი: აკადემიური მაცნე. გვ. 220-226.
ვერულავა თ., 2019. ჯანმრთელობის კაპიტალი - წარმოების მდგრადი განვითარების ფაქტორი. ეკონომიკა და ბიზნესი. 1, გვ. 45-59.
თოთლაძე ლ., ხუსკივაძე მ., 2019. ადამიანისეული კაპიტალის როლი ინკლუზიური მწვანე ზრდის უზრუნველყოფაში. საერთაშორისო სამეცნიერო კონფერენციის მასალების კრებული: „მწვანე ეკონომიკის ფორმირების აქტუალური პრობლემები“. თსუ პაატა გუგუშვილის ეკონომიკის ინსტიტუტი, თბილისი, გვ. 263-266.
თოთლაძე ლ., ხუსკივაძე მ. 2022. ადამიანისეული კაპიტალის როლი ინოვაციური აქტივობის დეტერმინანტების ფორმირებაში. ეკონომიკა, ბიზნესი და ადმინისტრირება. II, 71-80.
ილია II., 5 ნოემბერი, 2014. სრულიად საქართველოს კათალიკოს-პატრიარქი, საკვირაო ქადაგება. ჟურნალი “საპატრიარქოს უწყებანი”, 37 (737), 3.
პაიჭაძე ნ., 2019. ადამიანური რესურსების სტრატეგიული მართვა და ორგანიზაციული სწავლება. ეკონომისტი, 2, 53. http://ekonomisti.tsu.ge/doc/2-2019.pdf
პაპავა ვ., 2019. ინოვაციურ საქმიანობაში ადამიანისეული ფაქტორის გააქტიურების ძირითადი მიმართულებები ევროკავშირის პოსტკომუნისტურ ქვეყნებში. თსუ პაატა გუგუშვილის სახელობის ეკონომიკის ინსტიტუტის სამეცნიერო შრომების კრებული XII. თსუ პაატა გუგუშვილის სახელობის ეკონომიკის ინსტიტუტი. თბილისი. გვ. 38-60.
პაპავა ვ., სილაგაძე ა., 2019. ერთი საკვანძო ეკონომიკური ტერმინის – “Gross Domestic Product”-ის ქართული სახელწოდების შესახებ. ეკონომიკა და ბიზნესი. №1, გვ. 180-182.
სანაძე გ., 2020. „მაღალტექნოლოგიური ადამიანი“, როგორც ინოვაციური ეკონომიკის უნივერსალური ადამიანისეული ფაქტორი. ეკონომისტი. 4, გვ. 109-117.
სმითი ა., 2007. გამოკვლევა ხალხთა სიმდიდრის ბუნებისა და მიზეზების შესახებ. ილია ჭავჭავაძის სახელმწიფო უნივერსიტეტის გამომცემლობა. თბილისი.
ტუხაშვილი მ., 1998ა. საქართველოს შრომითი პოტენციალი. თბილისის უნივერ-სიტე¬ტის გამომცემლობა. თბილისი.
ტუხაშვილი მ., 1998ბ. საქართველოს მოსახლეობის განათლების პოტენციალი. „ლამპარი“. თბი¬ლისი.
ტყემალაძე ი., 2021. დასაქმების სახელმწიფო პოლიტიკა კოვიდ-19-ის პანდემიით გამოწვეული კრიზისის პირობებში საქართველოში. გლობალიზაცია და ბიზნესი. 12, გვ. 55-161. https://doi.org/10.35945/gb.2021.12.021
ცარციძე მ., 1999. სამუშაო ძალის კვლავწარმოება და შრომის ანაზღაურება ეროვნული შრომის ბაზრის ფორმირების პროცესში. თსუ გამომცემლობა “ცოდნის წყარო”, თბილისი.
ცარციძე მ., 2003ა. სამუშაო ძალის ღირებულების განსაზღვრის მეთოდიკა. საქართველოს მეცნიერებათა აკადემიის პ გუგუშვილის სახელობის ეკონომიკის ინსტიტუტის სამეცნიერო შრომების კრებული, ტომი III, საბაზრო ეკონომიკის განვითარების პრობლემები საქართველოში, გამომცემლობა “მეცნიერება”, თბილისი. გვ. 290-303.
ცარციძე მ., 2003ბ. სამუშაო ძალის ღირებულება და ფასი შრომის ბაზრის ელემენტების სისტემაში. ჟურნალი “სოციალური ეკონომიკა” იანვარ-თებერვალი. 1, 42-51.
ცარციძე მ., 2022. პროფესიული განათლება და ადამიანისეული კაპიტალის განვითარების სირთულეები საქართველოში თანამედროვე გლობალიზაციის პირობებში. გლობალიზაცია და ბიზნესი, 6, გვ. 211-217.
ცარციძე მ., ლაცაბიძე ნ., 2021. შრომის ბაზარი და არაფორმალური დასაქმების თავისებურებები გლობალური პანდემიის პირობებში. გლობალიზაცია და ბიზნესი. 12, 123-132. https://doi.org/10.35945/gb.2021.12.017
ჭავჭავაძე ი., 2012. ჩვენი ხალხი და განათლება. ტომი–4, პუბლიცისტური წერილები, თბილისი. გვ. 128.
ხუსკივაძე მ., თოთლაძე ლ., 2022. ადამიანკაპიტალის გაზომვის კონცეპტუალური ასპექტები. ეკონომიკა და ბიზნესი, 3, გვ. 91-107.
Acemoglu D., 2022. Confronting the challenges of the post-Covid world. Prospects of the Global Economy after Covid-19. Centre for Economic Policy Research, L., EC1V 0DX. pp. 7-38.
Ahir H., Bloom N., & Furceri D, 2023. Global Economic Uncertainty Remains Elevated, Weighing on Growth. February 2, online at https://www.imf.org/en/Blogs/Articles/2023/01/26/global-economic-uncertainty-remains-elevated-weighing-on-growth.
Altmann A., Tolo L., Sander O. & Lengauer T., 2010. Permutation importance: a corrected feature importance measure, Bioinformatics, 26(10), pp.1340–1347.
Aspinall E., 2021. The Geopolitics of Climate Change Transition: Security Threats, Power Struggles and a Test for Multilateralism, BFEG.
Baker S., R., Bloom N., Davis S. J., 2016. Measuring Economic Policy Uncertainty. The Quarterly Journal of Economics. 131(4), pp. 1593–1636. https://doi.org/10.1093/qje/qjw024
Barak M., & Bedianashvili G., 2021. Systematic Inventive Thinking (SIT): A Method for Innovative Problem Solving and New Product Development. Proceedings on Engineering Sciences. .3(1), pp. 111–122.
Barro R. J., 2001. Human capital and growth. American Economic Review (Papers and Proceedings), 91(2), 12–17.
Becker G.S., 1964. Human Capital. – Columbia University Press.
Bedianashvili G., 2021. Macroeconomic and Cultural Determinants of the COVID-19 pandemic crisis. Bulletin of the Georgian National Academy of Sciences. 15(2), pp. 191-197.
Bedianashvili G., 2023. Macrosystemic Challenges of Uncertainty under the Conditions of Confrontational Globalization. Bulletin of the Georgian National Academy of Sciences. 17(2), pp. 174-179.
Bedianashvili G., 2022. Determinants of Economic Growth and Development in Conditions of the Modern Challenges of Globalization. Economics, Business, and Administration. II: 42-52 (In Georgian).
Bedianashvili G., 2022. The COVID-19 Pandemic, Globalization, and the Socio-Economic System of the Country (Macro Aspect). Materials of International Scientific Conference: Covid Pandemic and Economics. Tbilisi, Ivane Javakhishvili Tbilisi State University, Faculty of Economics and Business, pp. 38-42.
Bedianashvili G., 2023. Macrosystemic Challenges of Uncertainty under the Conditions of Confrontational Globalization. Bulletin of the Georgian National Academy of Sciences, 17(2), pp. 174-179.
Berestycki C., Carattini S., Dechezleprêtre A., & Kruse T., 2022. Measuring and assessing the effects of climate policy uncertainty. OECD.
Blaug M., 1976. The Empirical Status of Human Capital Theory: A Slightly Jaundiced Survey. Journal of Economic Literature, 14(3), pp. 827–855.
Breiman L. (2001). Random Forests. Machine Learning. 45, pp. 5–32.
Bulina A., Mozgovaya K., & Pakhnin M., 2020. Human capital in economic growth theory: Classical models and new approaches. St Petersburg University Journal of Economic Studies, 36(2), pp. 163-188. https://doi.org/10.21638/spbu05.2020.201.
Chakrabarty N. & Biswas S., 2018. A Statistical Approach to Adult Census Income Level Prediction. International Conference on Advances in Computing, Communication Control and Networking (ICACCCN), Greater Noida, India, 207-212.
https://doi.org/10.1109/ICACCCN.2018.8748528.
Kharaishvili E., Chavleishvili M., Lobzhanidze M. (2018). The Socio-Economic Consequences of Educational Migration for Georgia. Conference proceedings: 20th International Conference on Economics, Business and marketing management. Barcelona, Spain.
Deming D. J., 2022. Four Facts about Human Capital. Journal of Economic Perspectives, 36(3), pp. 75-102.
EaP 2022. Developing Long-Term Climate Strategies in the EU Eastern Partnership countries. UNDP. https://dx.doi.org/10.1787/34483d83-en
Jones B.F., 2014. The Human Capital Stock: A Generalized Approach. American Economic Review, 104(11), pp. 3752–3777.
Kuznets S., 1955. Economic Growth and Income Inequality. American Economic Review. 45(1), pp. 1-28.
Lobzhanidze M. 2006. Problems of Youth Employment and Directions of Regulation. Universali, Tbilisi.
Lucas R.E., 2015. Human Capital and Growth. American Economic Review: Papers and Proceedings, 105(5), pp. 85–88.
Lundberg S. M., & Lee S.-I., 2017. A Unified Approach to Interpreting Model Predictions. In I. Guyon, U. V. Luxburg, S. Bengio, H. Wallach, R. Fergus, S. Vishwanathan, & R. Garnett (Eds.), Advances in Neural Information Processing Systems 30 (pp.4765–4774). Curran Associates, Inc.http://papers.nips.cc/paper/7062-a-unified-approach-to-interpreting-model-predictions.pdf
Lundberg S. M., Erion G., Chen H., DeGrave, A., Prutkin J. M., Nair B., Katz R., Himmelfarb J., Bansal N. & Lee S.I., 2020. From local explanations to global understanding with explainable AI for trees. Nat Mach Intell. №2, pp. 56–67. https://doi.org/10.1038/s42256-019-0138-9
Mankiw N.G., Romer D., Weil D.N., 1992. A Contribution to the Empirics of Economic Growth. Quarterly Journal of Economics, 107(2), pp. 407–437.
Manuelli R.E., Seshadri A., 2014. Human Capital and the Wealth of Nations. American Economic Review, 104(9), pp. 2736–2762.
Matthew E. Kahn Kamiar Mohaddes, Ryan N. C. Ng, M. Hashem Pesaran, Mehdi Raissi & Jui-Chung Yang, 2019. Long-Term Macroeconomic Effects of Climate Change: A Cross-Country Analysis. International Monetary Fund.
Mikiashvili N. 2017. Human Resources of Low-Income Country and Migration Flows (Example Georgia). Journal of International Economic Research JIER, 3(1), pp. 53-60.
Mincer J., 1958. Investment in Human Capital and Personal Income Distribution. Journal of Political Economy, 66(4), pp. 281–302.
Papava V., 2022a. Pandemic, War and Economic Sanctions: From Turbulent to Confrontational Globalization. Eurasia Review, May 23. https://www.eurasiareview.com/23052022-pandemic-war-and-economic-sanctions-from-turbulent-to-confrontational-globalization-oped/?fbclid=IwAR1zLFJs1kUFJWgp6qRXRWhLOy2OWnWjwIVUjMwjphnjqs0OKoUQSi12Z4I
Papava V., 2022b. On Illegal Globalization, or Can Globalization Ever End? Eurasia Review, December 19. https://www.eurasiareview.com/19122022-on-illegal-globalization-or-can-globalization-ever-end-oped/
Pedregosa F., Varoquaux, G., Gramfort A., Michel V., Thirion B., Grisel O., Blondel M., Prettenhofer P., Weiss R., Dubourg V., Vanderplas J., Passos A., Cournapeau D., Brucher M., Perrot M., & Duchesnay E., 2011. Scikit-learn: Machine Learning in Python. Journal of Machine Learning Research, 12, pp.2825–2830.
Sachs J., Lafortune G., Kroll C., Fuller G., Woelm F., 2022. From Crisis to Sustainable Development: the SDGs as Roadmap to 2030 and Beyond. Sustainable Development Report 2022. Cambridge: Cambridge University Press.
Schultz T.W.,1961. Investment in Human Capital. American Economic Review, 51(1), pp. 1–17.
Shapley L., 1951. Notes on the N-Person Game — II: The Value of an N-Person Game. RAND Corporation.
Shelia M., Tukhashvili M. (2023). Formation and Employment of the Retirement Age Workforce in Post-Soviet Georgia. In: Maximova, S.G. (eds) Complex Social Systems in Dynamic Environments. Lecture Notes in Networks and Systems, vol 365. Springer, Cham. https://doi.org/10.1007/978-3-031-23856-7_31
Sharma R., 2018. Health and economic growth: Evidence from dynamic panel data of 143 years. PLoS ONE 13(10), 1-20: e0204940.
https://doi. org/10.1371/journal.pone.0204940
Silagadze A., 2022. Contemporary Global Economic Trends: Transitional Economies during Covid-Depression. Bulletin of the Georgian National Academy of Sciences, 16(3), pp.130-135.
Solow R.M., 1991. Growth Theory. In: Companion to Contemporary Economic Thought. M. Bleaney, D. Greenaway, I. Stewart (eds.). London, Routledge.
Tahir M., Hayat A., Rashid K., Afridi M.A. and Tariq Y.B., 2020. Human capital and economic growth in OECD countries: some new insights, Journal of Economic and Administrative Sciences, 36(40), pp. 367-380. https://doi.org/10.1108/JEAS-07-2019-0073
The World Bank Group, 2021. Climate Risk Country Profile: Georgia, February 7, at online. https://openknowledge.worldbank.org/handle/10986/36382
The World Bank Group, 2022. The Climate Change Action Plan 2021–2025: Supporting Green, Resilient, and Inclusive Development. January 11, at online https://reliefweb.int/report/world/world-bank-group-climate-change-action-plan-2021-2025-supporting-green-resilient-and?gclid=CjwKCAiAuaKfBhBtEiwAht6H7-hqp9BfcaxQMLEDDL74uQXAtAakZUxz1ENm0eKyaJAs-MslKcRZXxoCqisQAvD_BwE
Totladze L., 2020. The Impact of Government Expenditure on Education and R&D as Factor of Homan Capital on Economic Growth. Ekonomisti. 2, pp. 79-86.
Totladze L., Khuskivadze M., 2022. Impact of Human Capital and Innovation Determinants on Economic Growth: Evidence from Georgia. International Journal of Business & Management Studies. 3(09), 28-33. DOI: 10.56734/ijbms.v3n9a4.
UNDP. February 19, 2015. What is Human Development? https://hdr.undp.org/content/what-human-development
Uzawa H., 1965. Optimum Technical Change in an Aggregative Model of Economic Growth. International Economic Review, 6(1), pp.18–31.
Veshapidze S., Otinashvili R., Gvarutsidze A., Abuselidze G., Zoidze G., 2022. Modern technologies to overcome the challenges of globalization. Entrepreneurship, 10(2), pp. 22-32. DOI: 10.37708/ep. so.v10i2.2
Veshapidze S., & Karchava L., 2022. Contradictions of Globalization under the COVID-19 Pandemic. Bulletin of the Georgian National Academy of Sciences. 16(4), pp. 152-157.
Veshapidze S., Zubiashvili T., & Chiabrish¬vili K. 2021. Globalization and New Opportunities for Georgia. Globalization and Business. 12, pp. 32-36. https://doi.org/10.35945/gb.2021.12.003
Weil D., (2007). Accounting for the effect of health on economic growth. The Quarterly Journal of Economics, 122(3), pp.1265–1306.
World Bank., 2018. The Human Capital Project. © World Bank, Washington, DC. http://hdl.handle.net/10986/30498
World Bank., 2020. The Human Capital Index 2020 Update: Human Capital in the Time of COVID-19. © World Bank, Washington, DC. http://hdl.handle.net/10986/34432
Zhylinska O., Bazhenova O., Zatonatska T., Dluhopolskyi O., Bedianashvili G., & Chornodid I., 2020. Innovation processes and economic growth in the context of European integration. Scientific Papers of the University of Pardubice, Series D: Faculty of Economics and Administration. 28(3), 1209, pp. 1-12.
Zubiashvili T.,Veshapidze S. 2019. Labor Emigration and Employment in Georgia. Humanities and Social Sciences Review. 09(01), pp. 127-135.
Keywords
Citation
Ekonomisti, Volume XIX, №3, 2023, pp. 60-84