Banber Erevani hamalsarani. Tntesagitut'yun.
| E - ISSN | : | 2738-2648 |
| P - ISSN | : | 2579-2946 |
Vol. 15 No. 1 (43) (2024)
Full Issue
Economic theory
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Economic theory
Sustainable Development Transformation of the Republic of Armenia: Context and Perception
AbstractThe article reveals the need for and methodology of the transformation of the sustainable development index. The idea of transforming the index made up of the indicators established by the UN’s Sustainable Development Agenda was proposed due to the most acute manifestations of certain regional problems. As for the Republic of Armenia, those issues also include security and overcoming the constitutional deficit in addition to socio-economic and ecological problems. Methodologically, this approach allowed us to elaborate a new set of sustainable development indicators.
Due to the introduced set of indicators, the sustainable development index (SDG Index Score -Y) is linked with variables such as the capital and labor - K, L, the ecological component (Ecology - E), the level of constitutionalism (Constitutional Compliance - U), security (Security - S), and time - T. In the proposed concept, the optimal operation of sustainable development (OOSD) derives from the goals and limitations determined by the specifics of development. By virtue of the indicators given above, we will have the sustainable development index modified as follows: Y=(K,L,E,U,S,T).
The schematic diagram of the concept includes indicators of sustainable development that relate to the responsible institutions of management, and indicate the respective norm required by the Constitution. The optimal management model is formulated based on the developed conceptual basis, where is required to select such a management that move the object from one state of stability to another, where the objective function takes the optimal value specified for the limitations of sustainable development indicators.
ReferencesDanilov N., Inozemtseva L., Chernova E., “Technique of Mathematical Model Application for Optimal Management When Studying the Sustainable Development Issues of Economic Region”, Regional Ecinimics: Theory and Ptactice, 45-(372), 2014.
Ghevondyan R., Kazaryan T.,”Security mechanisms in the context of geopolitical changes”, Herald of the Social Sciences, 3 (669), 2023.
Gutmann, Jerg, Katarzyna Metelska-Szaniawska, & Stefan Voigt (2023). The comparative constitutional compliance database.
Harutyunyan G., Sargsyan H., Gevorgyan R., “Constitutionalism: Issues of Diagnostics, Monitoring and Administration”, (Yerevan, Zangak 2017), p 139.
Harutyunyan G., Sargsyan H., Gevorgyan R, “Diagnostics and Monitoring of Constitutionalism in Transition Economies”, Lap LAMBERT Academic Publishing, 2018, p 59.
Sargsyan H., Khachatryan K., Kochinyan N., “State Security and Sustainability Issues in the Context of Sustainable Development of the Country. Phenomenon of Market Economy: From the Beginning to Our Days. Transformation of Economic Systems in the Context of Turbulent Development”, Collection of Scientific Works, Sochi, March 29 - April 2, 2023, pp 254-264.
Sargsyan H., “Ideological foundations of the economic revolution in the Republic of Armenia”, Banber of Yerevan University: economics, 2020, N1(31), pp 3-15.
Sargsyan H., “Fundamentals of Human Development. Study manual for Masters students’’: Chief editor, Yerevan, Noyan Tapan, 2004, p 318.
Sachs J.D., Lafortune, G., Fuller, G., Drumm, E. Implementing the SDG Stimulus. Sustainable Development Report 2023. Paris: SDSN, Dublin: Dublin University Press, 2023. 10.25546/102924.
Management
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Management
Green management interpretation within entrepreneurship framework
AbstractCurrently, organizations are trying to organize green business along with traditional entrepreneurship. Organizing a green business improves the organization's competitive position in the market, but at the same time requires the existence of a balanced ecosystem, that promotes sustainable development. In this regard, it is important to assess the functioning of the green entrepreneurship ecosystem at the micro-level of the economy. The article clarifies the scope of the green entrepreneurship ecosystem of organizations and makes recommendations for the performance evaluation of its activities․
ReferencesChand, Mahesh, (2018) “ANP-MOORA-Based Approach for the Analysis of Selected Issues of Green Supply Chain Management.” Benchmarking, vol. 25, no. 2, pp. 642–59, doi:10.1108/BIJ-11-2016-0177.
Famiyeh, Samuel, (2018) “Green Supply Chain Management Initiatives and Operational Competitive Performance.” Benchmarking, vol. 25, no. 2, pp. 607–31, doi:10.1108/BIJ-10-2016-0165.
Hakobyan A., Tshughuryan A., & Martirosyan G., (2023), “The Integrated Reporting Philosophy in Business Strategy” //“Wisdom” Scientific journal, Yerevan, 1(25), pp. 169-76. doi: 10.24234/Wisdom.v25i1.978.
Hasan, Md Morshadul, (2019) “Green Business Value Chain: A Systematic Review.” Sustainable Production and Consumption, vol. 20, Elsevier B.V., pp. 326–39, doi:10.1016/j.spc.2019.08.003.
Li, Dayuan, (2018) “Impact of Quality Management on Green Innovation.” Journal of Cleaner Production, vol. 170, Elsevier B.V., 2018, pp. 462–70, doi:10.1016/j.jclepro.2017.09.158.
Magon, Renata Bianchini, (2018) “Sustainability and Performance in Operations Management Research.” Journal of Cleaner Production, vol. 190, Elsevier Ltd, pp. 104–17, doi:10.1016/j.jclepro.2018.04.140.
Schaltenbrand, Birte, (2018) “See What We Want to See? The Effects of Managerial Experience on Corporate Green Investments.” Journal of Business Ethics, vol. 150, no. 4, Springer Netherlands, 2018, pp. 1129–50, doi:10.1007/s10551-016-3191-x.
Tshughuryan A, Khachatryan N. (2023), Ecosystem services financial ma-nagement information security issues, History and politics scientific journal, (2), 25, pp: 71-94 doi: 10.59630/10.59630/25792644-2023.2.25-71.
Zhou, Yunyue, (2019) “Green Management, Firm Innovations, and Environmental Turbulence.” Business Strategy and the Environment, vol. 28, no. 4, pp. 567–81, doi:10.1002/bse.2265.
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Management
Some issues of budgetary funding of state servants trainings in the Republic of Armenia
AbstractThe article examines and systematically analyzes the system of state financing of trainings of civil servants of the Republic of Armenia, using the methods of economic and statistical analysis. The source for the creation of the analysis database were the State budget indicators of different years, including planned, adjusted and actual data.
Within the framework of the article, there is studied the best international experience of state support for the organization of trainings (on the example of OECD countries) and the possibilities of its localization in RA. There are analized the dynamics and trends of the share of additional education (mainly includes the trainings) in the state budget, problems and gaps in the system of state funding of trainings are revealed according to directions and departments. Based on the analysis, there were made a number of suggestions to improve the system, which will contribute to the qualitative improvement and efficiency of trainings, and the formation of healthy competition among employees. In particular, it is proposed to review the training participation planning system, based on the study of real demand and the implementation of evidence-based policies, which will allow both to save public funds and to organize training according to effective targets.
ReferencesAdamu Saidu, A., Abubakar Ilelah, S., Ali, S. "The impact of training on employee’s performance in public sector organization: A conceptual paper." International Journal in Management and Social Science, 7 (14) ISSN: 2321-1784, 2019: 25-32. https://doi.org/10.12816/0048158
Afroz, N. "Effects of training on employee performance-A study on banking sector." Global Journal of Econimic and Business 4(1), 2018: 111-124.
Ali Ahmed Mohammed, R., Mdyusoff, R., Ismail, F., Ghafoor Kazi, A.,. "The Effect of Training on Employees' Productivity in Public Organizations in U.A.E." International Journal of Entrepreneurial Research 1(1), 2018: 15-18.
Armstrong, M. Handbook of human resource management practice. Tangail: Kogan Page, 2020.
Education 2030, Framework for Action. UNESCO Publishing, 2015.
Financial Incentives for Steering Education and Training. Paris: OECD Publishing, 2017.
Garavan, T., McCarthy, A., Carbery, R. "Training and organizational performance:Ameta-anaiysis of temporal, institutional and organizational context moderations." Human Resource Management Journal 31(1), 2020: 93-119. https://doi.org/10.1111/1748-8583.12284
Getting Skills Right. Future Ready Adult Learning Systems,. Paris: OECD Publishing, 2019.
https://minfin.am/hy/page/petakan_byujei_hashvetvutyun/ (accessed january 20, 2024).
https://minfin.am/hy/page/petakan_byujei_hashvetvutyun_2022_t_tarekan (accessed january 24, 2024).
Hughes, A. M., Zajac, S., Woods, A. L., Salas, E. . "The role of work environment in training sustainment: A meta-analysis. ." Human Factors, 62(1), 2019: 166–183. DOI:10.31580/ijer.v1i1.135
Մանիֆեստ, Մեծահասակների կրթությունը 21-րդ դարում, Ուսումնառության զորությունն ու բերկրանքը. European Association for Education of Adults, 2019.
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Management
Enlargement of communities in the context of administrative territorial reforms
AbstractIn this article we referred to the process of enlargement in RA communities in the context of administrative and territorial reforms. Administrative territorial reforms in the regions of the Republic of Armenia started in 2015-2017 and as a result of the implemented three-phase community enlargement process in 2018. As of now, the number of communities in the Republic of Armenia decreased from 915 to 502, with 52 clusters of multi-residential communities.
Referring to the changes in the management system of the enlarged communities, we noted that as a result of the enlargement, first of all, in the communities of Armenia, there was a redistribution of the posts of the staff of the communities, as a result of which the administrative and repetitive posts of the communities were significantly reduced.
We also studied the revenues and expenses of the budgets of the enlarged municipalities and showed that as a result of the enlargement process, cost planning and an increase in municipal incomes took place.
Thus, the enlargement of communities has generally had a positive effect and has the potential and strength to develop further. In this way, communities have become more self-financing and the level of decentralization has increased even more.
Key words: RA government, community, NFPO, enlargement of communities, local government, position, administrative unit, budget, income, expenses.
References• Law on Making Amendments and Additions to the Law of the Republic of Armenia "On Administrative Territorial Division of the Republic of Armenia" HO-148-N/HPT 2015:12:30/91(1180).
• Law on Making Amendments and Additions to the Law of the Republic of Armenia "On Administrative Territorial Division of the Republic of Armenia" HO-93-N, HHPT 2017:06:30/42(317).
• "On the long way of reforms, the RA local self-government system through the eyes of citizens" - report-2016.
• RA government's 2011 The annex to the protocol decision N 44 on approving the "Concept of the enlargement of communities and formation of inter-community associations" of the session of November 10.
• RA Law "On Yerevan Local Self-Government", HO-5-N/HHPT 2009:01:16/3 (669).
• https://www.minfin.am/hy/page/hamaynqayin_byujeneri_ampop_hashvetvutyun_2023t_1-in_kisamyak_
Finance
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Finance
Improvement of financial results budgeting in the CSR contents
AbstractBudgeting for financial results has traditionally been considered the preparation of cost and revenue estimates with responsibility centers in an organization. However, currently it covers a wider range, taking into account not only the internal but also the external value chain of the business. Currently, the value of organizations is not only evaluated by financial indicators, but also takes into account the responsibility of business from the point of view of ensuring public interests. The article makes recommendations for budgeting improvement of financial results, based on the requirements of companies corporate social obligations.
ReferencesChupalaev M.R., (2014) Motivation and budget management, “Economy and Society”, #2 (11), pp.1108-1111
Kharkova D., (2019), Modern technologies of budgeting in enterprises // Actual scientific studies, №5, pp. 76-80. (in Russan)
Fateeva S.V., (2019) Innovative approaches and methods of budgeting and their use in building an effective system of personnel motivation // Science: society, economics, law, No. 3, pp. 46-52. (in Russan)
Hakobyan A., Tshughuryan A., & Martirosyan G., (2023), “The Integrated Reporting Philosophy in Business Strategy” //“Wisdom” Scientific journal, Yerevan, 1(25), pp. 169-176. DOI: 10.24234/wisdom.v25i1.978
Fisher M.V. (2018) Budgeting and budget functions // Economic Journal, No. 6, pp. 204-211 (in Russan)
Tshughuryan A, Khachatryan N. (2023), Ecosystem services financial ma¬nagement in-formation security issues, History and politics scientific jour¬nal, (2), 25, pp: 71-94 DOI: 10.59630/10.59630/25792644-2023.2.25-71
Tshughuryan A., Hakobyan A., Grigoryan L., & Bayadyan A., (2022), The Philosophy of Assets Fair Value Presentation in Financial Statements, //“Wisdom” Scientific journal, Yerevan, 4(24), pp. 152-158. DOI: 10.24234/wisdom.v24i4.962
Tochilkina O.E., (2019) Traditional and alternative budgeting in enterprises // Scientific and practical electronic journal, No. 4, pp. 47-56. (in Russan)
Economic and mathematical modeling
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Economic and mathematical modeling
Entropic analysis: understanding economic sector relationships with Leontief's input-output tables
AbstractThe article delves into the evolution of the "entropy" concept and its corresponding theoretical interpretations. Employing Shannon's entropy formula and leveraging the methodology of entropy calculation through Leontief's input-output tables, the study conducts entropy calculations for the economic systems of Australia, the Republic of South Africa, the United States, Luxembourg, Russia, South Korea, Japan, India, and China. These calculations are based on the tables published by the Organization for Economic Cooperation and Development.
The primary finding of the study can be summarized as follows: Economic entropy, determined through the coefficients of total costs in Leontief's input-output tables, serves as a gauge of the interconnectedness among various branches within the economic system. Furthermore, financial and economic crises, as well as natural disasters, contribute to an escalation in the interconnectedness of economic branches, signifying a rise in entropy.
ReferencesBatten, Davit. 1981. Entropy, information theory and spatial input-output analysis. Umera Economic Studies. ISSN 0348-1018; 92.
Boulding, Kenneth. 1966. The economics of the coming spaceship Earth. Environmental Quality in a Growing Economy, ed. H Jarett, Baltimore: Johns Hopkins University Press.
Clausius, Rudolf. 1934. “Mechanical theory of heat.” In Second law of thermodynamics edited by Arkady Timiryazev, 130-159. Moscow-Leningrad: GTTI.
Daly, Herman. 1991. Steady-state economics (2nd ed.) Washington, DC: Island Press.
Davtyan, G. 1981. “The concept of entropy.” Publications and Reports 3 : 138-145.
Georgescu-Roegen, Nicholas. 1971. The Entropy Law and the Economic Process, Cam-bridge, MA and London, England: Harvard University Press. https://doi.org/10.4159/harvard.9780674281653
Input-Output Accounts Data. 2024. https://www.bea.gov/industry/input-output-accounts-data#supplemental-estimate-tables
Input-Output Tables (IOTs) 2021 ed. OECD. Stat. https://stats.oecd.org/Index.aspx?DataSetCode=IOTS_2021
Jakimowicz, Aleksander 2020. “The Role of Entropy in the Development of Economics.” Entropy 22(4), 452 (April): 1-25. https://doi.org/10.3390/e22040452
Leontief, Wassily. 1986. Input-output Economics. Oxford: Oxford University Press. ISBN, 0195035275, 9780195035278.
Nalchajyan, Torgom, and Vahram Nalchajyan. 2017. Elements of Information Theory. Yerevan: Economist, ASUE.
Rosser, J. Barkley, Jr. 2021. “Econophisics and the Entropic Foundations of Economics.” Entropy 23(10), 1286 (September): 1-15. https://doi.org/10.3390/e23101286
Shannon, Claude. 1966. Works on information theory and cybernetics. Moscow: Publishing house of foreign literature.
Sieniutycz, Stanislaw and Peter Salamon. 1990. Finite-time thermodynamics and thermoeconomics. New York: Taylor & Francis.
Skolka, J.V. 1964. The Aggregation Problem in Input-Output Analysis, Prague: Czechoslovak Academy of Sciences.
Theil, Henri and Pedro Uribe. 1967. “The Information Approach to the Aggregation of Input-Output Tables.” The Review of Economics and Statistics, Vol. 49, No. 4 (Nov.): 451-462.
Zachariah, Dave and Paul Cockshott. 2017. “Leontief Meets Shannon – Measuring the Complexity of the Economic System”. Arxiv: 1705.02154: 1-9. https://doi.org/10.48550/arXiv.1705.02154
Zwick, Martin and Abbas Heiat. 1982. “Entropy Measure in Input-Output Analysis." Sys-tems Science and Science: Proceedings of the Twenty-Sixth Annual Meeting of the Society for General Systems Research, ed. by L. Troncale, SGSR, Louisville, KY: 266-268.
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Economic and mathematical modeling
Assessment of the shadow economy and tax evasion in RA
AbstractThis article aimed to assess the shadow economy and tax evasion in Armenia based on the indirect method of Currency Demand Approach (CDA). As the macroeconomic indicators in our analysis are not stationary at the same degree, we have used the autoregressive distributed lag (ARDL) models and the results of the co-integration test showed that there is a co-integration between the model variables, therefore it is possible to use the CDA.
In the model have been used monthly data during the 2013-2023 period. We can conclude that the CDA method can be considered to be an appropriate method for measuring the shadow economy and tax evasion in the RA’s economy. The results of the research show that during the observed years the level of the shadow economy and tax evasion are decreasing, which means that government is increasingly recognizes the importance to constrain the shadow economy given its connection to issues such as loss of tax revenues.
ReferencesAmoh J., Babonyire A., (2019), “An estimation of the underground economy and tax evasion Empirical analysis from an emerging economy.”, Journal of Money Laundering Control Vol.22, No.4, pp. 626-645.
Cagan, P. (1958), “The demand for currency relative to the total money supply.”, Journal of Political Economy, Vol.66, No.4, pp.302-328.
Eilat Y., Zinnes C., (2000), “The Evolution of the Shadow Economy in Transition Countries: Consequences for Economic Growth and Donor Assistance.”, CAER II Discussion Paper No. 83, 70p.
Eilat Y., Zinnes C., (2002), “The Shadow Economy in Transition Countries: Friend or Foe? A Policy Perspective, World Development, 30 (7), pp. 1233-1254.
Frey B., Weck-Hanneman H., (1983), “Estimating the Shadow Economy: A ‘Naive’ Approach.”, Oxford Economic Papers, vol. 35, pp. 23-44.
Frey B., Weck-Hanneman H., (1984), “The hidden economy as an “unobserved” variable.”, European Economic Review, 26/1, pp.33-53.
“LUYS” foundation., (2020), “Estimating the size of the shadow economy of the RA from the perspective of the tax system.”, 50 p.
Medina L, Schneider F., (2021), “The Evolution of Shadow Economies through the 21st Century.”, IMF library pp 11-70.
Nkoro E., Aham U., (2016), “Autoregressive Distributed Lag (ARDL) cointegration technique: application and interpretation”, Journal of Statistical and Econometric Methods, Vol.5, No.4, pp 63-91.
Schneider F., Buebn A., & Montenegro C., (2010), “Shadow Economies All over the World New Estimates for 162 Countries from 1999 to 2007”., Policy Research Working Paper 5356., The World Bank Development Research Group Poverty and Inequality Team & Europe and Central Asia Region Human Development Economics Unit.,52p.
Tanzi V., (1980), “The underground economy in the United States: estimates and implications.”, Banca National eel Lavor Quarterly Review, Vol.135, pp.427-453.
Tanzi V., (1979), “Underground Economy, Income Tax Evasion, and the Demand for Cur-rency in the United States, 1929–76.”, unpublished, International Monetary Fund, pp 283-305.
