Business and Legislation

Effective use of land resource potential – a key factor in sustainable economic development

2026-06-29T06:32:06+00:00

At the current stage of the country's economic development, among many challenges, it essentially depends on the rational and effective use of natural resource potential, in particular, land resources creating an environment conducive to the complex development of the economy and social sphere, optimizing the sectoral structure of the market economy, and ultimately, the well-being of the population. Analysis of socio-economic transformations confirms that events and processes related to the management of land resource potential have formed complex knots and their solution requires deliberate efforts on the part of the state, science, and society, as well as the effective use of the country's geoeconomic and intellectual potential. For this purpose, it is necessary to define strategic directions of development, conceptual and methodological approaches.

Global Supply Chain Disruptions under Geoeconomic Fragmentation: A FIGARO-Based Macroeconomic Network Analysis

2026-06-30T04:46:21+00:00

This article examines the macroeconomic implications of global supply chain disruptions in the context of growing geoeconomic fragmentation and confrontational globalization. The study explores how geopolitical tensions, technological fragmentation, sanctions, energy shocks, and post-pandemic restructuring processes transform the architecture of global production networks and intensify systemic economic vulnerabilities. Particular attention is devoted to the application of the FIGARO (Full International and Global Accounts for Research in Input-Output Analysis) international input–output framework for identifying structural interdependencies, strategic vulnerabilities, and the transmission channels of global shocks across countries and sectors.

The research combines approaches from global value chain theory, network economics, and input–output analysis. Using FIGARO data for 49 countries and 21 economic sectors during the period 2010–2023, the paper applies eigenvector centrality analysis to determine the most systemically important suppliers within the global economy. The findings reveal the dominant role of China’s manufacturing sector and the increasing importance of U.S. financial, technological, and professional service sectors in global supply networks. The study also demonstrates how the COVID-19 pandemic, energy crises, and geopolitical conflicts accelerated the restructuring of global production systems and increased the significance of resilience-oriented economic policies.

The article argues that FIGARO-based network analysis provides an effective methodological framework for evaluating macroeconomic resilience, strategic dependencies, and the vulnerability of small open economies under conditions of global uncertainty. The results contribute to the understanding of structural transformations in the world economy and offer analytical tools for assessing supply chain resilience, reshoring processes, and geoeconomic risks.

Efficiency of Agro-Industrial Product Quality Assessment Systems: International Practices and Challenges for Georgia

2026-06-29T08:00:28+00:00

The assessment of agro-industrial product quality is a significant component of modern economic systems, influencing food safety, consumer trust, export potential, and national competitiveness.

The aim of this study is to analyze the efficiency of international agro-industrial product quality assessment systems and to identify opportunities for their adaptation to Georgia.

The research is based on comparative, institutional, and systemic analysis. Particular attention is devoted to Codex Alimentarius standards, HACCP principles, ISO 22000, the European Union’s “Farm to Fork” approach, the United States’ preventive control system, and the opportunities offered by digital traceability technologies.

Codex Alimentarius is internationally recognized as a set of standards, guidelines, and codes of practice designed to ensure food safety and fair trade, while within the WTO SPS Agreement it serves as an international reference framework for food safety regulation.

The findings demonstrate that quality assessment systems in developed countries are based on risk-oriented, integrated, and technologically supported approaches. In the case of Georgia, major challenges remain, including weak control of primary production, insufficient digital traceability, difficulties faced by small producers in adapting to international standards, and the need to strengthen institutional capacities.

The paper proposes an Integrated Digital Quality Assessment Model (IDQAM), which integrates standardization, institutional control, HACCP, laboratory assessment, digital traceability, data analytics, and support mechanisms for small producers.

A new paradigm of sustainable development of rural areas (by the example of Georgia)

2026-06-29T08:30:33+00:00

Currently, there is increased interest in the problems of sustainable development of rural areas in modern conditions on the part of the state, society and science. This is a natural phenomenon, formed under the influence of external and internal factors in the country's development, which poses the task of a deep analysis of the territorial (regional) peculiarities and trends of the contradictory processes of globalization (localization), the development and implementation of measures for theoretical understanding, methodological substantiation and practical support for the transition to the principles of sustainable development. The article examines the problems of sustainable development of rural areas of Georgia, analyzes the political, state, social, economic and environmental aspects of current processes, and assesses the factors that contributed to the emergence of negative processes in the development of rural areas.

A new paradigm for sustainable development of rural areas is proposed: the development and modernization of rural areas is a determining factor in strengthening Georgian statehood; It is advisable to consider issues of use, protection and potential management of rural areas as the most important resource of the country, performing industrial, economic, socio-demographic, cultural, environmental, recreational and other national (state) functions – on the basis of a systemic (holistic) approach; the sustainable components of the territorial development process are: population, economy, and territory. Their development must be carried out on a unified conceptual and methodological basis; the principles of synchronization, complexity and multifunctionality of territorial development programs must be observed.

Methodological Approaches to the Evaluation of a Firm’s Long-Term Investments and Cash Flows

2026-06-29T09:33:27+00:00

This paper examines the methodological aspects of evaluating a firm’s long-term investments and cash flows, as well as contemporary approaches to investment decision-making. The study aims to explore the economic nature of investment activities, investment project evaluation methods, risk management mechanisms, and the fundamental principles of investment portfolio formation. Particular attention is paid to the role of investments in enhancing a firm’s financial sustainability, competitiveness, and long-term growth.

The methodological framework of the research is based on theoretical and practical approaches to economic analysis, comparative analysis, the assessment of financial performance indicators, and modern tools for evaluating investment activities. The paper discusses both static and dynamic methods of investment appraisal and highlights their practical application in corporate financial management.

The effectiveness of a firm’s long-term investment strategy largely depends on portfolio diversification, accurate risk assessment, and the adoption of modern investment approaches. Special emphasis is placed on innovative, digital, and environmentally sustainable investments, which contribute to strengthening a firm’s financial stability and improving its competitive position in the marketplace.

The practical significance of the study lies in the applicability of its findings and recommendations to investment policy planning, long-term investment decision-making, and risk management processes. The research outcomes may serve as a useful guide for managers, investors, and financial analysts seeking to improve the efficiency and sustainability of corporate investment activities.

The Impact of Tourism Activities on Economic Relations and Trust-Building in Frozen Conflicts: The Case of Abkhazia

2026-06-29T13:22:15+00:00

In the modern world, conflicts remain a significant problem and have a serious impact on both regional security and socio-economic development. In conflict-affected regions, economic activity is often hindered, unemployment increases, trust among the population declines, and opportunities for cooperation weaken. These challenges are particularly evident in the case of Georgia, where the conflicts in the Abkhazia region have significantly impeded both regional development and the process of restoring relations between societies. Under such conditions, particular importance is attached to practical approaches that promote peace not only through political agreements but also through everyday economic interactions.

Tourism is one of the sectors that can play a positive role even in a conflict environment. Despite existing security risks and infrastructural challenges, properly planned tourism activities create employment opportunities, support the development of local businesses, and strengthen economic ties between different communities. Thus, tourism can become a kind of economic bridge that facilitates interaction between parties separated by conflict and lays the foundation for cooperation, including in sensitive contexts such as relations connected to the Abkhazia region.

Digital Transformation of Accounting Systems and Challenges of Inventory Control in Georgia

2026-06-30T03:38:50+00:00

The digital transformation of accounting systems has become one of the most significant determinants of financial information quality and business process efficiency in the modern economic environment. This issue is particularly relevant in the area of inventory control, where delayed information, incomplete system integration, and fragmented accounting models generate substantial operational and financial risks.

The purpose of this study is to evaluate the impact of the digital transformation of accounting systems on the effectiveness of inventory control in Georgia. The research is based on a mixed methodological approach that incorporates the analysis of international academic literature, the assessment of the functional capabilities of modern digital technologies — including ERP systems, Artificial Intelligence (AI), cloud-based platforms, and blockchain technologies — as well as the examination of practical challenges within the Georgian business sector.

The findings indicate that a significant number of Georgian enterprises still rely on partially integrated accounting systems, which complicates real-time inventory control, accurate cost determination, and the timely processing of financial information. The study demonstrates that the integrated implementation of digital technologies substantially reduces information asymmetry, improves the accuracy of financial data, and enhances operational transparency.

The article develops recommendations for the modernization of accounting systems, the integration of ERP platforms, the development of digital competencies, and the implementation of modern inventory control mechanisms. The results of the study may be utilized by business entities, regulatory bodies, and professional institutions to improve financial management systems and strengthen economic transparency.

The scientific contribution of the study lies in linking inventory control challenges with the level of digital integration of accounting systems in the context of the Georgian business environment.

Management of risks in crisis period: role of audit Maintenance of company’s persistence

2026-06-30T03:55:29+00:00

The modern turbulent business environment requires organizations to constantly transform their management models. The purpose of this work is to explore the dynamics between risk management and organizational resilience during times of crisis and to identify the emerging role of internal audit as a strategic ally in this process.

Qualitative research methodology is used in the work, in particular multiple case study, method (Yin, 2018); as the object of research is chosen subjects of having three different specifics: digital giant (Netflix), traditional global industry (Toyota) and leader of developing market (Georgian retail sector). For data triangulation is used IIA international standards and empirical data. The comparative analysis was carried out based on the three-phase model (response, adaptation, resilience) selected by the authors. The research revealed that the optimal formula for ensuring resilience involves the synergy of Western systemic maturity and the operational agility of Georgian businesses. The work has theoretical (agency and RBV theory development), as well as practical value for companies in the process of crisis management.

The Relationship Between Migration and Wages in Georgia 2010-2025: An Econometric Analysis

2026-06-30T04:10:57+00:00

This paper examines the relationship between migration and wages in Georgia using quarterly data for the period 2010–2025. Given the complexity of the causal links between the variables, the analysis proceeds incrementally - from a static model to dynamic specifications: Ordinary Least Squares (OLS), an Autoregressive Distributed Lag Model (ARDL) with an Error Correction Mechanism (ECM), and a Vector Autoregression (VAR/VECM) model are applied sequentially. The results show that migration exerts a positive and statistically significant effect on wages in both the short and the long run. Impulse-Response function and variance decomposition analyses confirm a bidirectional relationship between the variables, indicating that wages act as a significant determinant of migration flows over the long term. The consistent conclusion across all estimated models confirms the reliability and robustness of the findings.

Empirical Assessment of the Transformational Effects of Small Entrepreneurship Support Policies in Georgia

2026-06-30T04:24:24+00:00

The article examines the transformative effect of economic policy supporting small entrepreneurship in Georgia. In contemporary economic conditions, small entrepreneurship is viewed not only as a source of employment and economic activity, but also as a key driver of innovation, structural transformation, and economic sustainability. Despite the quantitative growth of small businesses in Georgia, their productivity and competitiveness remain constrained, indicating the need for a deeper analysis of policy effectiveness.

The study is based on the evaluation of official statistical data, the institutional environment, and state support programs. It analyzes the main barriers to the development of small entrepreneurship, including access to financial resources, the quality of human capital, and technological lag. At the same time, positive trends are identified, particularly those related to improvements in the business environment and the expansion of state support mechanisms. The article argues that, although the policy framework supporting small entrepreneurship in Georgia has demonstrated significant progress, the full realization of its transformative potential requires a clearer policy orientation toward productivity growth, the promotion of innovation, and the strengthening of institutional coordination.

Digital Transformation and Data-Driven Social Media Marketing in Tourism: Driving Competitive and Sustainable Development in Georgia

2026-06-30T04:38:43+00:00

This paper presents a comprehensive analysis of social media marketing strategies, content management practices, and analytical frameworks within the contemporary tourism industry, with a particular emphasis on Georgia as an emerging destination. Adopting a customer-centric approach, the study highlights the critical role of personalization and emotional engagement in influencing consumer decision-making within digital ecosystems. In increasingly competitive and information-saturated environments, the capacity of tourism brands to foster authentic and emotionally resonant relationships with potential travelers constitutes a key source of competitive advantage.

The research examines the effectiveness of integrated communication strategies, culturally embedded content, and social proof mechanisms in enhancing brand trust, credibility, and customer loyalty. Special attention is given to user-generated content and peer influence, which significantly shape destination image and mitigate perceived risk in the decision-making process.

Furthermore, the study underscores the strategic importance of social media analytics in optimizing marketing performance. By integrating quantitative indicators, such as engagement and reach, with qualitative insights derived from sentiment analysis, organizations can achieve a more comprehensive understanding of consumer behavior and improve targeting accuracy.

The findings suggest that an integrated, data-driven, and adaptive marketing approach not only enhances organizational performance but also contributes to the sustainable development and global competitiveness of the tourism sector.

Summer School 2026 „European Union, Peace and Georgia“

2026-06-30T05:20:01+00:00

On June 1, 2026, the Summer School “European Union, Peace and Georgia” was opened at the Sokhumi State University within the frameworks of the Jean Monnet Module, which is supported by the ERASMUS+ Programme (ERASMUS-JMO-2024-HEI-TCH-RSCH–EUPEACE, project N101175481). The Summer School 2026 was opened by the Manager of the Jean Monnet Module, Professor Larisa Takalandze; Welcomed the participants Academic Leader of the project, Professor of Sokhumi State University, Zurab Khonelidze.

Attention magazine readers and potential authors!

2026-06-30T05:27:08+00:00

We think it is interesting for you to inform that the journal "Business and Legislation" has been published since December 2020 with an international scientific-analytical status and is indexed in the international search database Google Scholar, ERIXPLUS, as well as in several other databases (see the main page of the site at ojs.b-k.ge).

Over the years, the magazine has been a reliable partner for business circles, an experienced guide in the field of business, a kind guide in the labyrinths of legislative acts, a selfless servant for the academic field and will continue this tradition.

The journal is open to all interested parties. It is possible to publish articles in Georgian, English, German and Russian languages on topical issues of business administration and management, economic and social policy. Reviews of published monographs and manuals, as well as comments, clarifications, notes and recommendations for improvement on legislative acts are accepted.

Regarding the new status of the journal, we remind you of the rules for publishing a scientific article and provide you with additional requirements:

- The scientific article should be presented in A4 format. The volume, including the list of used literature and the abstract, should not be less than 7 pages of typed text on the computer with 1.5 spacing and 11 font size and should not exceed 20 pages. It should outline the relevance of the research problem, research goals and objectives, research methodology, research results (newness), recommendations.

- The paper written in Georgian must be accompanied by abstracts in Georgian and English - up to 1000 marks each. For those written in a foreign language - main content on 2-3 pages in Georgian and abstract in the same foreign language.

- It is necessary to submit the article to the editors as a printed copy, together with the version (Georgian and foreign language text - Asylfaen font, and foreign language text - Times New Roman). Below the title of the article (on the right side) should be indicated the full name, surname, academic degree, position, ORCD, telephone and e-mail address of the author (or authors).

- The article should show the use of important literature related to the research problem. The name of the literature should be placed at the end of the article in the form of a single list: a) the name of the book in the following order - surname and initials of the author (authors), name of the book, place of publication, publishing house, year; b) for a journal article - surname and initials of the author(s), title of the article, title of the journal, year, number of the journal. The source indicated in the bibliography should be used in the text of the article. When quoting from the work of this or that author, he should indicate the source by indicating the appropriate page in the following way [3, p. 41], where the first digit corresponds to the serial number of the quoted source in the list of used literature, and the second - to the page from which the quotation is given. The bibliographic description of each book (journal) in the bibliography should correspond to its title page.

- Basically, in the text, tables, graphs and charts should be placed in the place of their reference, if there is not enough space - maybe on the next page. Tables, graphs and charts should have a title and numbering.

The scientific article submitted for publication is reviewed by a specialist reviewer in the field (the identity of the reviewer will not be known to the author, nor will the reviewer be informed of the identity of the author/authors).

With a separate exception, publishing an article is paid - the fee for publishing an article in a magazine is 150 (fifty) GEL. The settlement report is indicated in the journal.

If these requirements are not met, the article will not be published and will not be returned to the author.

At least 2 issues of the magazine are published per year, distributed electronically and available to any user at the address: http:Ojs.b-k.ge

Send the articles to the address: yuripapaskua.b.k@gmail.com, or submit them to the editorial office in printed form, together with the version.