Vol. 16 No. 1(45) (2025)

DOI: https://doi.org/10.46991/BYSU.G/2025.16.1
Published: 2025-06-09

Full Issue

Economic theory

  • Economic theory

    Economic and Social Innovations in Armenia: Challenges and Opportunities

    Grigor Hayrapetyan
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    Abstract

    Innovation is a key driver of economic growth and social progress. Economic and social innovations are essential for fostering inclusive, creative, and sustainable societies. While economic innovations enhance productivity, competitiveness, and technological advancement, social innovations address critical societal needs by improving quality of life, education, and public well-being. In Armenia, the interplay between these two forms of innovation is crucial for sustainable development. However, social innovations often face underinvestment in free-market economies due to their public good characteristics, necessitating strategic interventions from governments and other stakeholders. Governments and private interest groups can play an important role in institutionalizing social innovation through incentives to social innovators.

    This paper examines the role of economic and social innovations in Armenia, analyzing their interconnectedness within regional and global contexts. It explores the challenges of fostering social innovation in a developing economy and highlights the importance of government involvement, international collaborations, foreign direct investment, and diaspora engagement. The study emphasizes the need for increased investment in research, education, and human capital to ensure that social progress keeps pace with economic growth. Ultimately, the paper argues that a balanced approach to economic and social innovation is essential for Armenia’s long-term prosperity.

    References

    1. Anna Kisova “ Social Innovation As An Economic System”, European Proceedings of Social and Behavioural Sciences, 2021

    2. Armenia The Second Systematic Country Diagnostic, Beyond Boundaries: Unlocking Potential for a Sustainable Tomorrow, WBG, 2024.

    3. Bruno Anicet Bittencourt "The Impact of Social Innovation: Benefits and Opportunities from Brazilian Social Business", Revista 2017.

    4. Eduardo Pol, Simon Ville “Social innovation: Buzz word or enduring term?”, The Journal of Socio-Economics. 2009.

    5. Elena-Simina Lakatos, Oana-Bianca Bercea, Laura Bacali “The concept of innovation in social economy. A review and a research agenda” Review of Applied Socio- Economic Research, Volume 11, Issue 1/ 2016.

    6. Esra Kabaklarli , Mahmut Sami Duran, Yasemin Telli Üçler “High-Technology Exports and Economic Growth: Panel Data Analysis for Selected OECD Countries”, Forum Scientiae Oeconomia, Volume 6 (2018), No. 2.

    7. Global Innovation Index, https://www.wipo.int/web-publications/global-innovation-index-2024/en/

    8. Impact Hub Yerevan web page. https://yerevan.impacthub.net/about-us/

    9. Kaits web page. https://www.teachforarmenia.org/en/incubator

    10. Kolba Lab web page. https://kolba.am/projects/future-skills-and-jobs-for-armenias-rural-youth

    11. Lloyds Bank, Armenia: Investing in Armenia, https://www.lloydsbanktrade.com/en/market-potential/armenia/investment

    12. Social Innovation in World Regions. https://www.socialinnovationatlas.net/fileadmin/PDF/kapitel/02_SI-in-World-Regions_v02.pdf, web page visited on 01.10.2024.

    13. Tech4Armenia (T4A) web page, https://www.teachforarmenia.org/en/tech4armenia

  • Economic theory

    Media as a Factor of Intellectual Evolution

    Sargis Ashvanyan, Nikita Ravochkin
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    Abstract

    The article presents the philosophical media, which act as a factor of intellectual evolution in the realities of modern social development. The authors consider media and technization in relation to the formation of new principles of social existence. The specificity of intellectualization of social systems is revealed. Innovative effects of media influencing society for the life of individual and collective subjects are determined. A comparative analysis of the implementation of intellectual achievements in practice is given. The possibilities of cognitive, value and behavioral resources in relation to the consolidation of society are clarified. The authors substantiate the popularity of media as an open communication system. Emphasis is placed on the pragmatics of media.  The authors consider new media from the standpoint of challenges for the formation of new principles of social existence. The instrumental capabilities of media in the field of journalism are identified. The innovative effect of storytelling for intellectual evolution is determined. The positive potential of immersive media and VR technologies is designated. The possibilities of narratives in relation to the foundations of personal and collective existence are clarified. The emphasis is placed on the pragmatics of media. In conclusion, the article summarizes and summarizes the results of the study.

    References

    1. Evdokimov V.A. Functions of immersive media // Science of Man: Humanitarian Research. 2019. No. 1 (35). Pp. 67 – 72.

    2. Zamkov A.V., Krasheninnikova M.A., Lukina M.M., Tsynareva N.A. Immersive journalism: approaches to theory and problems of education // Modern information technologies and IT education. 2017. Vol. 12. No. 1. Pp. 166 – 172.

    3. Jenkins H. Convergence Culture: Where Old and New Media Collide. – NY: New York University Press, 2006. 318 р.

    4. Krasavina A.V., Artemov I.A. Storytelling and immersion: modern trends in journalism // Znak: problematic field of media education. 2019. No. 1 (31). Pp. 102 – 109.

    5. Mokhov A.I., Svetlakov V.I., Mokhova V.A. Intellectualization of the sphere of life activity as a means of forming the noosphere of V.I. Vernadsky // Bulletin of the Russian Academy of Natural Sciences. 2015. No. 4. Pp. 31 – 40.

    6. Mokhov A.I. Intellectualization of information resources of Russia – the imperative of the times / Scientific notes of IMEI, scientific and educational journal. 2013. Vol. 3. No. 2. Pp. 26 – 30.

    7. Novikova A.A., Kiriya I.V. Aesthetics of immersion: features of the creative activity of a journalist in multimedia and transmedia projects // Bulletin of the St. Petersburg University. Language and literature. 2018. Vol. 15. No. 2. Pp. 276 – 288.

    8. Nureyev R.M. Formation of an industrial society and the search for the wealth of nations // Terra economicus. 2012. Vol. 10. No. 1. Pp. 180 – 197.

    9. Osipovskaya E. A. Virtual reality technologies as a new tool of journalism // Vestn. NSU. Series: History, philology. 2018. Vol. 17, No. 6: Journalism. Pp. 78 – 83.

    10. Ravochkin N.N., Popov E.A. Informal practices in networks of intellectuals: socio-philosophical analysis // Sociodynamics. 2024. № 3. Pp. 45-56.

    11. Rifkin J. The age of access: How the shift from ownership to access is transforming capitalism. London: Penguin books, 2000. 312 p.

    12. Santo B. Innovation and global intellectualism // Innovations. 2006. No. 9 (96). Pp. 32 – 44.

    12. Shkondin M. V. Media system as a factor in the intellectualization of society: structural and functional aspects // Social and humanitarian knowledge. 2017. No. 8. Pp. 96 – 113.

    14. Shkondin M. V. Systemic characteristics of the media // The system of mass media of Russia. M., 2001. P. 17 – 34.

    15. Shkondin M.V. Media system as a factor of publicity representation in the processes of world exploration by society // Bulletin of the Volga University named after V.N. Tatishchev. 2017. Vol. 1. No. 2. P. 185 – 189.

  • Economic theory

    The Assessment and Analysis of the Security Level of Countries

    Samson Davoyan, Vahe Asatryan
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    Abstract

    The security of the country is the mutually supported and balanced capabilities of its multi-institutional systems to resist internal and external threats, which can ensure the territorial integrity of the country, the stable and effective functioning of all its most important systems, economic, political etc.

    The purpose of the article is to study the individual components and directions of the country's security, to carry out a calculation and comparative analysis of the economic security of different countries using an integral index. Within the framework of the research, the foundation of the economic development of the country and the possibility of ensuring it at different levels of the country's security were also considered.

    References

    1. Davoyan S. (2016), “Analysis of the comparative efficiency of the multifaceted transformations of the countries”, Gyumri. "Dpir" publishing house, 415 pages

    1. Theodore W. Schultz. (1978), “On Economics and Politics of Agriculture.” In Distortions of Agricultural Incentives, pp. 3-23. Bloomington, Ind.: Indiana University Press

    2. Agarkov, G.A., Tarasyeva, T.V. (2020), “Assessment of passive economic security of the socioeconomic system of the region”. International Conference on Numerical Analysis and Applied Mathematics, 2293, 120002. https://doi.org/10.1063/5.0030882

    3. W. Arthur Lewis. (1954), “Economic Development with Unlimited Supplies of Labour”, https://doi.org/10.1111/j.1467-9957.1954.tb00021.x

    4. Andrew F. Krepinevich Jr. (2010), “National Security Strategy in an Era of Growing Challenges and Resource Constraints”, https://csbaonline.org/research/publications/national-security-strategy

    5. Kravchenko, V., Kudryavtseva, T., Kuporov, Y. (2021). A method for assessing threats to the economic security of a region: A case study of public procurement in Russia. Risks, 9(1), pp. 1-10. https://doi.org/10.3390/risks9010010.

    6. Kremer-Matyškevič, G Černius. (2019) “Country's economic security concept: Theoretical insights”. I Vilnius: Mykolo Romerio universitetas,

    7. Molchan A.S., Saenko S.V. (2016) “Economic security of the state: current state, threats and threshold values”. Scientific works of KubGTU, No. 2

    8. W. Hudson. (2021), Economic Security for All: How to End Poverty in the United States, URL: http://shults.org/wadehudson/esfa/

Management

  • Management

    Intergenerational Justice: Challenges and Perspectives in the Republic of Armenia

    Vardush Gyozalyan, Suren Avetisyan
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    Abstract

    As part of the research presented in this article:

    • the ideological and theoretical-methodological foundations of ensuring intergenerational justice as an economic issue were examined, along with its role, significance, and possible approaches to addressing the problem in the context of the theory of justice;
    • the intergenerational justice component within the structure of the Social Justice Index and the methodology for its assessment were studied;
    • based on the methodology of the Social Justice Index, the current state of intergenerational justice in Armenia was assessed through the analysis of the most comparable data and indicators, as well as their dynamics, and the main challenges arising from the issue were identified.

    The research applied methods of economic and statistical analysis, chronological series, scientific deduction, and abstract methods.

    The study revealed that all key indicators of intergenerational justice exhibit concerning trends. Data on pension and family benefit policies point to a likely deepening of income inequality in the future, along with a continued decline in opportunities for vulnerable population groups. Should the dynamics of environmental indicators continue, the next generation is sure to inherit an ecological environment with significant negative consequences for the quality of life. Trends in R&D investment and public debt indicators warn of the prospects of reduced competitive opportunities for the economy in the future and a significant increase in the tax burden.

    Timely acceptance of the challenges arising from intergenerational justice, as well as the assessment and refinement of the resulting factor priorities in public policy, will not only allow inheriting better living conditions for the next generation, but also lay a solid foundation for long-term sustainable economic development.

    References

    References

    Gyozalyan, Vardush (2022): Economics and Social Justice, Yerevan. Edit Print, pp. 215-237.

    Höffe, Otfried (2006): Gerechtigkeit, Eine philosophische Einführung, Verlag C.H. Beck, München (Russian edition. Justice. Philosophical Introduction, trans. from German, M, Praxis, 2007, p. 194)

    Merkel, Wolfgang and Giebler, Heiko (2009): Measuring Social Justice and Sustainable Governance in the OECD. In Sustainable Governance Indicators 2009: Policy Performance and Executive Capacity in the OECD, edited by the Bertelsmann Stiftung, 187–215. Gütersloh: Bertelsmann Stiftung.

    Rawls John (1971) A Theory of Justice, Harvard University Press, 561 p.

    Sen, Amartya (2009): The Idea of Justice, The Belknap Press of Harvard University Press, Cambridge, Massachusetts pp. 248-249.

    Social Justice in the EU and OECD, Index Report 2019, 94 p.

    Solow, Robert (1992): An Almost Practical Step toward Sustainability. Washington, DC: Resources for the Future, Volume 19, Issue 3, pp. 162-172.

    Statistical Yearbook of Armenia 2024.

    Stiglitz, Joseph (2019): People, Power, and Profits: Progressive Capitalism for an Age of Discontent, pp. 191-193.

    Wiedmann et all, The Material Footprint of nations, Proceedings of the National Academy of Sciences, September 2013.

    World Commission on Environment and Development. Our Common Future. New York: Oxford University Press, 1987.

  • Management

    Labor Market Developments in the Republic of Armenia

    Amalya Galstyan
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    Abstract

    Effective functioning of the labor market is one of the keys to sustainable development and economic growth. Thus, corresponding government policy along with the other socio-economic regulation mechanisms have direct impact not only on the rate of employment and unemployment, but the other labor market indicators and as a result, on economy as a whole. The article explains the situation on the labor market of the Republic of Armenia, by investigating main indicators and the reasons of tension situation, as well as presents recommendation on improving it. In particular, it’s recommended to tighten collaboration among universities and the business, by creating specialized training programs, by improving technical and vocational education (TVE), by developing labor market institutions and implementing appropriate policy.

     

     

    References

    Global labour figures at a glance. Data and statistics 2024, https://www.ilo.org/data-and-statistics

    Miciuła I., Rogowska K., Wojtaszek H. The Labor Market And Its Influence On Shaping The Business, Journal Information Technology and Management · July 2021:12449-12455, https://www.researchgate.net/publication/353549568_The_Labor_Market_And_Its_Influence_On_Shaping_The_Business

    Khachatryan K., Hakobjanyan A., Nikoghosyan K. Bridging Academia and Industry:

    Unraveling University-Industry Collaborations in the EU and Transitioning Economies

    Insights from Armenia and Italy, Yerevan, YSU press, 2024.

    Rodrik D, Di Tella R.Labor Market Shocks and the Demand for Trade Protection: Evidence from Online Surveys. Working Paper 25705. National Bureau Of Economic Research, March 2019,https://www.nber.org/system/files/working_papers/w25705/w25705.pdf

    Simchenko N., Troyan I., Goryachikh M., Labour market development under the external shocks, Journal of Theoretical Economics,10, 2020: 78-86

    Social-economy Situation of RA, January-December, 2000, NSS RA, 2001 https://armstat.am/file/article/sv_12a_2000_141.pdf

    Social-economy Situation of RA, January-December, 2001, NSS RA, 2002, https://armstat.am/file/article/sv-12a-01-iii.1.4.1.pdf

    Social-economy Situation of RA, January-December, 2002, NSS RA, 2003 https://armstat.am/file/article/sv-12a-02-iii.1.4.1..pdf

    Social Snapshot and Poverty in Armenia, 2018. Part 1 Armenia: Poverty snapshot over 2008-2017https://armstat.am/file/article/poverty_2018_english_2.pdf

    Social Snapshot and Poverty in Armenia, 2024. Part 1 Armenia: Poverty snapshot over 2020-2023 https://armstat.am/file/article/poverty_2024_en_2.pdf

    Statistical Yearbook of Armenia 2001 (1999, 2000),NSS RA,Yerevan,2001 https://armstat.am/file/doc/686.pdf

    Statistical Yearbook of Armenia 2002,NSS RA,Yerevan,2002 https://armstat.am/file/doc/630.pdf

    Statistical Yearbook of Armenia 2011, NSS RA Yerevan 2011 https://armstat.am/file/doc/99466628.pdf

    Statistical Yearbook of Armenia 2016,NSS RA Yerevan,2016 https://armstat.am/file/doc/99504348.pdf

    Statistical Yearbook of Armenia 2024,NSS RA,Yerevan,2024

    The Concept of Sustainable Development. For Sustainable Human Development/UNEP national Committee. Yerevan, 2002

    Unemployment by level of education 2024. World Bank, https://genderdata.worldbank.org/en/indicator/sl-uem-elv-zs? Educ ation = Adva nce d&gender=total

    World Economic Forum. Where the World’s Highly Educated Migrants Come From. https://www.weforum.org /stories/2020/12/where-do-highly-educated-migrants-come-from/

    World Employment and Social Outlook. Trends 2024.ILO, Geneva, 2024, https://www.ilo. org/ publications/flagship-reports/world-employment-and-social-outlook-trends-2024 p.11

    World Migration Report 2024, IOM, UN Migration, https://publications. iom.int/ books/ world-migration-report-2024.

  • Management

    Competition and Corruption: How the Level of Competition Affects Corrupt Practices in Public Procurement

    David Hovhannisyan, Tatevik Hovhannisyan
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    Abstract

    Public procurement plays a crucial role in ensuring effective governance and economic growth, encompassing processes through which governmental entities acquire goods, services, and works. Public procurement has a significant impact on the provision of public services and stimulates economic development. In many countries, public procurement represents a notable portion of government expenditure, often accounting for 15-20% of GDP. The dynamics of public procurement directly affect market behavior, set industry standards, and can promote innovation. Establishing a competitive environment is crucial for enhancing transparency and accountability in procurement processes, which ultimately leads to more efficient use of public funds. Moreover, fostering competition can mitigate anti-competitive practices and reduce the risk of corruption, which is often exacerbated by non-transparent procurement systems. This article employs a qualitative analysis, utilizing insights from public choice theory and examining case studies from Estonia, South Korea, and Armenia to explore the interplay between competition levels in public procurement and the prevalence of anti-competitive behavior and corruption. It emphasizes the importance of institutional frameworks that support competition and transparency to combat corruption and improve public procurement efficacy.

    References

    OECD Public Procurement for Innovation: Good Practices and Strategies, OECD Public Governance Reviews, OECD Publishing, Paris, https://doi.org/10.1787/9789264265820-en, 2017, էջ 3.

    Public procurement reform in Latin America and the Caribbean (English). Washington, D.C.: World Bank, http://documents.worldbank.org/curated/en/371061468229175620/Public-procurement-reform-in-Latin-America-and-the-Caribbean Group, 2012

    Arrow, K. J. Social Choice and Individual Values. New Haven: Yale University Press, 1951, 9-11

    Bhatia, A., & Dhanani, A. "Fostering Competition in Public Procurement: Insights from Emerging Markets." Public Procurement Law Review, 30(2), 2021, 78-95

    Smith, J. "Public Procurement and Corruption: A Comparative Study." Journal of Economic Perspectives, 36(4), 2022, 112-130

    North DC. Institutions, Institutional Change and Economic Performance. Cambridge University Press; 1990. 65-80

    Jensen, M. C., & Meckling, W. H. Theory of the Firm: Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics, 3(4), 1976, 305-360.

    Khashchyan, A., & Hovhannisyan, T. "The Impact of E-Procurement on Public Procurement Efficiency in Armenia." Journal of Public Administration Research and Theory, 32(1), 2022, 45-67.

    OECD/Asian Development Bank .“Chapter 6 - The role of civil society in curbing corruption in public procurement”, in Fighting Bribery in Public Procurement in Asia and the Pacific, OECD Publishing, Paris, 2008

    Lambsdorff, J. G. The Institutional Economics of Corruption and Reform. Cambridge University Press. https://doi.org/10.1017/CBO9780511492617, 2007

    Kasekamp, R. "The Impact of E-Procurement on Competitive Bidding in Estonia." Journal of Public Administration Research and Theory, 2020

    Kattel, R., & Mergel, I., Digital Government in Estonia: Building an E-Government Infrastructure for the 21st Century. In Digital Government: Technology and Public Sector Management, 2016. 261-278

    Korea's Public Procurement Service. Annual Report on Public Procurement and Efficiency Measures. Public Procurement Service, Republic of Korea. https://u.to/vd4OIQ. 2022

    Transparency International. Corruption Perceptions Index. https://www.transparency.org/en/cpi/2024/. 2024

    Estonian Ministry of Finance. Public Procurement in Estonia: Annual Report 2018, https://riigihanked.riik.ee/rhr-web/#/

    South Korea’s Public Procurement Service. Annual Report on Public Procurement 2020 from the Public Procurement Service. https://u.to/_e4vIg

    Ministry of Finance of the Republic of Armenia, Public Procurement Report 2019 https://u.to/7u4vIg

Finance