Modern Global Economy Research Articles

Formation of an effective mechanism of innovation management at enterprises

The article examines the importance of the formation of an effective mechanism of innovative management in the conditions of the modern global economy and the state of war. Attention is focused on the essence of innovation management, its main tasks and elements, such as strategy, organizational structure, innovation processes, innovation culture, knowledge management and financing. The problems and challenges that arise during the implementation of innovative management in the conditions of war are highlighted separately, in particular, the need to adapt strategies to the changing environment and resource limitations. The prospects for the development of innovative mechanisms in the context of digital technologies and artificial intelligence, which can contribute to rapid adaptation to new conditions, are also considered. The article emphasizes that an effective innovation mechanism is the key to achieving high results and competitiveness of organizations even in difficult conditions.

Designing circular supply chains with digital technologies for competitive sustainability: An operation management perspective

The objective of this research is to investigate how digital technologies, specifically blockchain, artificial intelligence (AI), and the Internet of Things (IoT), can be integrated into circular supply chains to enhance sustainability and preserve a competitive advantage. The goals of circular supply chains, which are founded on the ideas of the circular economy, are to reduce waste, promote resource regeneration, and lessen their negative effects on the environment. The study highlights the critical role that digital technologies play in guaranteeing transparency, promoting real-time monitoring, and optimizing resource distribution. Blockchain offers traceability and trust, IoT boosts visibility and operational efficiency within supply chains, and AI improves demand forecasting and resource efficiency. Though the benefits are obvious, there are significant obstacles to overcome, including high implementation costs, complex technological issues, scalability issues, and regulatory barriers. The research demonstrates how these digital technologies can effectively promote sustainability while enhancing operational efficiency through case studies of well-known companies like HP, Walmart, and Philips. The report also highlights important future trends and makes suggestions for companies looking to develop their workforces, invest in digital technologies, and work together on circular economy platforms. In the end, digital tool adoption is essential for creating supply chains that are more sustainable and competitive in the modern global economy.

THE GENESIS AND EVOLUTION OF THE THEORETICAL DISCOURSE OF ECOLOGICAL ECONOMICS

The article examines key trends and challenges in the modern global economy. Over the last four decades, structural changes have profoundly impacted industries and economic relations, emphasizing a growing divide between advanced and developing nations. This gap exacerbates existing inequalities, with developed countries often reaping more benefits from globalization, while developing nations face difficulties in keeping up. One of the most significant drivers of these transformations is the rapid pace of technological advancement. New industries and economic models have emerged, making innovation and digitalization central to modern economies. These changes are reshaping production methods, resource allocation, and labor structures, effectively marking a new industrial revolution and pushing even traditionally slow-to-adapt sectors to evolve rapidly. Simultaneously, the global economy faces increasing environmental challenges, including climate change, pollution, and resource depletion. The difficulty of achieving a lasting balance between economic growth and environmental sustainability is becoming more pressing. Without addressing these issues, economic systems risk further destabilization, deepening environmental crises and threatening long-term global stability. Given these intertwined challenges, there is a growing need for a comprehensive re-evaluation of the relationship between economic activities, social processes, and the natural environment. It has been emphasized that ecological economics, which integrates environmental concerns into economic theory, offers a valuable framework for understanding how to manage economic growth without exceeding the planet’s ecological limits. Future research and policy should not only address current challenges but also anticipate new approaches to resource management and ecological preservation. These approaches might include transitioning to circular economies, expanding the adoption of green technologies, and prioritizing renewable energy sources. In this context authors believe that it is crucial for policymakers, businesses, and civil society to collaborate in shaping new economic models that prioritize both human and environmental well-being. Only through such joint efforts can we hope to achieve sustainable economic growth that aligns with the planet's ecological boundaries, ensuring a stable future for generations to come.

Renewable Energy Sources in The Context of Emissions Reduction: Geographical Aspects And Challenges for Sustainable Development

Purpose: The study aims to provide a nuanced understanding of renewable energy sources' geographical aspects and challenges in reducing emissions and promoting sustainable development. Design/Methodology/Approach: This study adopts a qualitative approach to investigate renewable energy sources in the context of emissions reduction, focusing on geographical aspects and challenges for sustainable development. The methodology is designed to gain in-depth insights and understand the complexities of deploying and utilising renewable energy across different geographical regions. Case studies provide detailed, context-specific insights into the practical implementation and challenges of renewable energy projects. The selection of case studies follows a purposive sampling method to ensure diversity in geographical settings, types of renewable energy, and stages of development. Reviewing project reports, policy documents, and environmental assessments related to each case study. The data was analysed by cross-verifying information from different data sources to enhance the reliability and validity of the findings. Research Limitation/Implications: It justifies the immediate construction of a “green economy” in Ukraine, drawing on theory and the experience of advanced countries. Findings: The diversity of renewable energy sources, geographical influences, technological advancements, policy and regulatory frameworks, and socio-economic impacts influenced their efforts to reduce emissions. Social Implication: The modern global economy faces significant challenges such as energy security, sustainable development of society, and climate change. Practical Implication: The paper identifies directions and outlines paths and mechanisms for accelerated development. Indeed, such a powerful carbon dioxide and methane emissions surge has never been observed. Originality/ Value: Recently, the most pressing issue is the “carbon footprint”, which refers to the total amount of carbon dioxide and methane emissions released into the environment due to human industrial activity. Measures to combat it will soon focus on modernising technologies to facilitate the transition to the sixth technological paradigm and minimise greenhouse gas emissions. Critical technical solutions may involve harnessing the potential of hydrogen energy and immobilising or preventing greenhouse gas formation technologies. As an alternative direction, the authors consider research to solve some issues related to hydrogen production using metals.

PHILOSOPHICAL UNDERSTANDING OF THE MODERN WORLD’S ECONOMY THROUGH THE INTELLECTUAL LEGACY OF ARISTOTLE

The authors of the article, by defining the main characteristics of the modern global economy, engage in its analysis and attempt to understand whether it truly is an economy or rather chrematistics according to Aristotle. Using indicators of "quality of life" and the quantitative ratio of "wealth and poverty" in the world, the authors apply these as equivalents to Aristotle’s concepts of "economy" and "chrematistics." The authors also address the process of "digitalization" of society as a key characteristic of the modern economy (in particular) and as a factor that propels the economy into a new world, adding an ethical dimension to the discourse. At the end of the work, the authors emphasize the necessity of supplementing the classical concepts of "economy" and "chrematistics" with new ethical concepts.

ტრიფინის პარადოქსი ოცდამეერთე საუკუნეში

This article presents a fresh perspective on the Triffin Paradox, a concept introduced by economist Robert Triffin in the mid-20th century that continues to have a significant impact on global financial systems and policies. Despite the passage of time and the evolution of the economy, the fundamental principles of the Triffin Paradox remain relevant in today's financial discussions. The paper provides a thorough analysis of the ongoing relevance of the Triffin Paradox in the modern global economy. It draws upon historical context, theoretical frameworks, and empirical evidence to shed light on how the paradox continues to manifest itself in the current financial landscape. Specifically, it explores how the dominance of the U.S. dollar as the world's primary reserve currency perpetuates structural imbalances and systemic vulnerabilities, echoing the concerns raised by Triffin. Moreover, the paper delves into the implications of the Triffin Paradox for various stakeholders, including policymakers and central banks. It examines the challenges posed by the pursuit of domestic monetary policy objectives in an interconnected world, where the stability of the global financial system relies heavily on the stability of the reserve currency issuer. Additionally, the paper explores potential strategies for mitigating the risks associated with the Triffin Paradox and fostering a more sustainable international monetary order. By integrating insights from economics, finance, and international relations, this paper contributes to a deeper understanding of the Triffin Paradox and its enduring significance in shaping contemporary financial dynamics. It emphasizes the need for policymakers and stakeholders to address the inherent structural tensions in the global monetary system, with the goal of promoting financial stability, economic resilience, and inclusive prosperity worldwide.

Forecasting cryptocurrency returns using classical statistical and deep learning techniques

The emergence of cryptocurrencies has generated enthusiasm and concern in the modern global economy. However, their high volatility, erratic price fluctuations, and tendency to exhibit price bubbles have made investors cautious about investing in them. Consequently, it is essential to develop methods and models to forecast cryptocurrency returns to benefit investors, traders, and the scientific community. Despite the considerable volume of research on Bitcoin price forecasting, other cryptocurrencies have received little attention in academic literature. Additionally, the current body of literature on predicting cryptocurrency prices or returns emphasizes the use of in-sample methodologies. However, this method is susceptible to overfitting. To address these gaps in the literature, this study employs autoregressive moving average (ARMA), generalized autoregressive conditional heteroskedasticity (GARCH), exponential generalized autoregressive conditional heteroskedasticity (EGARCH), and long short-term memory (LSTM) deep learning neural networks to forecast returns for the ten most actively traded digital currencies: Bitcoin, Ethereum, Ripple, Chainlink, Litecoin, Cardano, Ethereum Classic, Bitcoin Cash, Tether, and Binance Coin. To assess the accuracy of the two models, this study utilizes an out-of-sample method with data gathered sequentially from November 9, 2017, to September 18, 2022. The results indicate that all models exhibit high accuracy, as evidenced by their low root mean square error (RMSE), mean absolute error (MAE), and mean squared error (MSE) values. Meanwhile, the hybrid EGARCH-LSTM or GARCH-LSTM models demonstrate slightly better accuracy compared with the other models. The findings are valuable for investors, traders, and researchers involved in cryptocurrency forecasting.

From Ancient Paths to Modern Highways: Mapping the Evolution of World Trade Routes and their Crucial Role in Today's Global Supply Chains Gaurav Dangre

From Ancient Paths to Modern Highways: Mapping the Evolution of World Trade Routes and their Crucial Role in Today's Global Supply Chains Gaurav Dangre

A Forgotten Maritime Highway: Maritime Cultural Heritage of the Emperor Seamounts with Implications for High Seas Conservation

AbstractThis article seeks to complement efforts to summarize information on the exceptional natural significance of the Emperor Seamounts. The human history of the Emperor Seamounts is culturally diverse and spans thousands of years. This ranges from indigenous cultures to the period of European colonial exploration and expansion to the rise of the modern global economy and its impact on the area through the hunting of marine mammals, fishing, and the transportation of commodities across these remote waters on ships. Some of these vessels were wrecked or disappeared, and may rest on the seabed of the Emperor Seamounts. Understanding this human history is critical in approaching the assessment, ongoing study, public outreach and management of this remote region, which has been highlighted as one of the most important areas beyond national jurisdiction to protect globally.

Development of migration processes in the context of transformation of international relations

Introduction. The practical study of migration trends in the modern global economy and the increase in the movement of people has become a key area of research. This subject requires reliable theoretical and methodological support due to the rapid pace of change and the ever-changing socio-economic landscape, as well as the challenges of transforming global relations. In fact, migration processes have always been an integral part of international relations, but the conditions and context of their development are constantly changing. Transformations in international relations caused by political, economic, social, and environmental factors have a particular impact on the direction of migration processes. Therefore, it is necessary to reassess existing approaches to global migration policy, taking into account their impact on the socio-economic development of countries with different socio-economic systems. The purpose of the paper is to identify conceptually new approaches to migration processes and to reveal transformational processes in international economic relations. Results. Migration can be defined as the movement across international borders from or within a place of residence. Migration can be viewed from different perspectives, both in a positive sense (moving in search of a new job or better living conditions) and in a negative sense (fleeing political repression, conflict, violence, natural disasters or human rights violations). In principle, migration involves significant changes in the cultural structures of both the migrant and the host country. In the context of socio-economic instability, the model of the migration process development environment should be based on building the potential of intellectual, human and economic security, justifying the priorities of the national economy in the context of limited resources. Methodological assessments of the migration process environment should determine not only the level of pushing the population abroad and attracting migrants to the destination country, but also the optimal containment of labor and educational migration. Conclusion. The global arena is undergoing a process of transformation of international economic relations, which is caused by the approaching systemic crisis caused by capital overhang. This phenomenon affects every country in the world. In the process of global transformation, in order to maintain relations between countries, it is necessary to reform the migration system. It is important that migration policy is regulated at the international level, so that each state can control its population, labour market and support its economy. It also ensures the rights of foreign workers: working conditions, wages, social protection, and health insurance. The prospect of further research is a statistical analysis of the number of migrants and their impact on the economies of the host countries. This includes analysing the impact of migration on the labour market, economic growth and wealth distribution, socio-cultural impact, political implications, security aspects, and technological innovations.

Global food security: developing effective approaches to sustainable development

The agri-food complex is one of the most important sectors of the world economy, without which the very existence of mankind would be impossible. The relevance of studying the issue of global food security lies in the fact of the aggravation of the problem, which is expressed in the rapid growth of population in comparison with the growth of food production. Issues of food security remain relevant throughout the development of the economy, both at the national and global levels. This problematic issue is deeply studied by foreign and domestic researchers, who pay special attention to key aspects of national food security, such as the availability of food and the sustainability of its provision, as well as its safety and quality for human health and the environment. The insufficient knowledge of these issues, their practical significance, the controversial nature of the problems and their undoubted relevance determined the choice of research topic in this article. This review provides an analysis of the key issues and approaches that ensure the effective and sustainable functioning of the food system in the modern global economy.

Prospects for the use of cryptocurrencies in international maritime logistics

This article analyzes the trends in the development of cryptocurrencies and considers the main trends in their use in international water logistics. The use of cryptocurrencies in recent years has become one of the responses to the opportunities and challenges of the modern global economy, as nowadays the global digitalization being introduced everywhere affects the development of almost all spheres of the economy. As a result of digitalization, new markets, forms of communication, goods and services have emerged. Active digitalization has led to the formation of a digital profile of a person, the requests of participants in the global economy to form alternative savings instruments, not correlated with the dynamics of traditional financial markets, new money equivalents that meet the current requirements of the digital economy and are more independent of the actions of the issuing countries. The emergence of cryptocurrencies was an attempt at a technological response to the emerging problems and challenges. The main purpose of this study is to study the role and prospects of using cryptocurrencies in modern international water logistics.

The Growth of Service-Learning in Vietnamese Higher Education: Catalysts, Characteristics, and Challenges

Service-learning has appeared in Vietnamese higher education in recent decades and is among a range of pedagogical approaches that have been imported from the West. This article discusses features of service-learning in Vietnamese universities that have emerged from the distinctive ideologies of the socialist-communist country, the influence of traditional values and religious beliefs, and the conditions of a postcolonial society and modern global economy. The interpretive multisite case study discussed in this article investigated local service-learning courses in four public universities in the Middle and South of Viet Nam. Four catalysts for the growth of service-learning in Viet Nam were identified: employability, responsibility to the community, enhancing young people’s moral values, and teachers as bottom-up initiators of service-learning initiatives. The lessons from this study hold potential to inform future policies, institutional organization, as well as pedagogies and strategies to improve and sustain service-learning practices in Vietnamese higher education and similar contexts.

Digital Tools for Accounting and Analytical Support of Enterprises: Innovation and Management Aspect

Introduction. The modern global economy requires the digitalization of all spheres of enterprise activity, including accounting and analytical processes. This creates new synergistic effects on all related production, management, and business processes and new opportunities and business directions. The analytical process begins to include new information resources, which gives an impetus to the systematic development of support for decision-making by the management of enterprises, increasing the level of relevance of management decisions, and providing opportunities for operational restructuring of market tactics and strategies.
 Aim and tasks. The study aims to introduce digital tools for analytical accounting support for Ukrainian enterprises based on innovative management aspects and develop a mathematical model for using digital resources to optimize the architecture of enterprise information systems.
 Results. A mathematical model of the use of digital resources was developed to optimize the architecture of the company's information systems. The process of introducing digital tools for accounting and analytical support of enterprises in Ukraine was also studied and compared with the practice of their implementation under the conditions of “Economy 4.0” in developed countries. The advantages of introducing digital tools for accounting and analytical support were determined and obstacles to this process are named. It is indicated that the main guarantee of the effectiveness of the use of digital tools in view of the innovation-management aspect of their implementation is adaptability to internal and external influences, technological innovations, changes in tasks, goals, and even the sphere of economic activity of the enterprise. It is noted that this largely depends on the architecture of the information systems. According to estimates, the annual “cumulative effect” growth rate from introducing IT technologies in accounting and analytical processes may exceed 19%.
 Conclusions. The developed mathematical model makes it possible to propose a new approach to the transformation of the system of digital accounting tools and analytical support instead of the traditional eclectic approach, which ensures effective auxiliary functionality or implements new functionality of the entire information management system, the elements of which are digital accounting tools. Factors that prevent the implementation of digital tools, which will increase the competitiveness of Ukrainian enterprises, are indicated.

Digital Economy in a Global Context: World Experience

The processes related to digitalizing all branches of the world economy are irreversible components of the evolutionary development of the modern global economy. In current realities, the overriding priority in the economic sphere is the development of innovations and digital technologies using all their advantages regarding expanding the information component of enterprises’ activities, creating information assets, minimizing risks, the possibility of remote cooperation and the reduction of transaction costs, the ability to quickly respond to existing security, competitive, and other types of challenges. The purpose of the academic paper is to highlight the principal directions and trends of the world experience in developing the economic sphere’s digital component. System-structural, comparative, logical-linguistic methods, analysis, synthesis, induction, and deduction in the processing scientific information, abstraction, and idealization for studying and processing of statistical and analytical data were used during the research. Based on the research results, the concepts and components of the digitalization of the economic sphere, the main prerequisites, patterns and directions of developing digital economy in recent years were studied from the perspective of evaluating the global experience of this process.

Book Review: The Protection of Intellectual Property Rights Under International Investment Law, Simon Klopschinski, Christopher Gibson & Henning Grosse Ruse-Khan. Oxford, Oxford University Press. 2021

With the growth and expansion of international trade, government policymakers need to formulate policies advancing favourable bilateral trade relations, including a comparative advantage to penetrate export markets. To maintain growth and protect existing trade flows, we are seeing an increase in various protectionist tactics, amongst which is the ‘beggar-thy-neighbour’ approach (gaining an economic advantage at the expense of others). We explore this approach extensively to reveal what makes it so attractive to nations. Can it be justified in the modern global economy? Beggar-Thy-Neighbour, Bilateral Relations, Currency Devaluation, Economies, Government, International Trade, Policy, Protectionist Policies, Tariff, Trade Barriers

Commentary: ‘Beggar-Thy-Neighbour’ and International Trade: An Analysis With Policy Recommendations

With the growth and expansion of international trade, government policymakers need to formulate policies advancing favourable bilateral trade relations, including a comparative advantage to penetrate export markets. To maintain growth and protect existing trade flows, we are seeing an increase in various protectionist tactics, amongst which is the ‘beggar-thy-neighbour’ approach (gaining an economic advantage at the expense of others). We explore this approach extensively to reveal what makes it so attractive to nations. Can it be justified in the modern global economy? Beggar-Thy-Neighbour, Bilateral Relations, Currency Devaluation, Economies, Government, International Trade, Policy, Protectionist Policies, Tariff, Trade Barriers

DIGITAL PLATFORMS AND ECOSYSTEMS: THE DRIVING FORCES OF THE GLOBAL ECONOMY

The article substantiates the essence and differences between digital platforms and ecosystems, their importance and role in the modern global economy and the impact on the development of innovations and the digital global space. The purpose of the article is to study the features of digital platforms and ecosystems, key aspects of their functioning, common and distinctive features between them and creating value for users, as well as identifying the driving forces of development and assessing their impact on innovation in the context of digitalization and globalization of the economy. To achieve the goal, the methods of scientific literature analysis, statistical data, as well as the analysis of well-known examples of successful digital platforms and ecosystems were used. An overview of modern trends in the development of digital technologies and their impact on the global economy was conducted. Based on the conducted research, the article presents the results of the analysis of the role of digital platforms and ecosystems in the global economy. The key success factors of such ecosystems are considered, the main development trends and their negative aspects are revealed. Multifunctional platforms are also considered and their advantages are determined, and the peculiarities of their formation in the digital space are shown on the example of cryptocurrency ecosystems. The main provisions of the article can be used by domestic business entities to determine the priority areas of digitization and build their own digital platforms and ecosystems based on them. Further research could be aimed at deepening the understanding of the impact of digital platforms and ecosystems on the global economy by analyzing their role in specific industries and sectors, such as finance, trade, healthcare, education. It is also possible to study their impact on the stability and growth of the economy, as well as their role in creating new jobs and changing the forms of interaction between labor market participants. It is also important to study the impact of digital platforms on the level of inequality in the economy and ways to reduce possible negative consequences arising from their activities.

STRATEGIC MANAGEMENT IN TOURISM: KEY ASPECTS

Purpose. Tourism is a powerful modern industry and its popularity is growing rapidly. At the same time, the industry is highly competitive, and tourism business enterprises must take into account all the risks inherent in the modern global economy in order to succeed. Strategic management plays a vital role in achieving this differentiation. The purpose of this article is to research modern approaches and key aspects of strategic management in tourism. To achieve this goal, a research methodology was used, which included the analysis of relevant literature and data on the tourism market. Method. In this study, an analysis of scientific sources, studies and publications related to strategic management in tourism was carried out. Modern approaches to strategic management in tourism were analyzed, their features and methods of application were determined. To obtain practical examples, an analysis of the activities of leading companies in the field of tourism was carried out. Results. The main modern approaches to strategic management in tourism are defined, which include: competitive strategy, diversification, development of new markets and products, strategy of focusing on clients and development of technological innovations. It is noted that each of these approaches has its own characteristics and methods of application. Scientific novelty. Our study contributes to the existing body of knowledge on strategic management in tourism by providing a comprehensive overview of contemporary approaches and key aspects. In addition, our study highlights the importance of technology, sustainability and innovation in strategic management in tourism, which has not been covered in detail in previous studies. Practical significance. The results of our research can be used by tourism companies to develop and implement effective strategic management strategies that will help them realize their own competencies and achieve success in the global tourism industry, attract more visitors, improve service quality and increase industry profitability.

The Efficiency of the Logistic System in Georgia

The intensification of competition in the modern global economy and the accelerated processes of economic integration put the need for significant changes in the optimization of logistics potential on the agenda. Economic growth is the main aspiration of countries. A perfect market is a prerequisite for economic growth, in which logistics plays a decisive role. Considering the favorable geographical location, Georgia has the potential to become the main logistics hub of the Caucasus and Central Asia. Logistics has an important place for the development of the Georgian economy, therefore, the creation of an efficient transport and logistics system is one of the main and necessary factors for increasing the competitiveness of the country. Logistics is an important part of Georgian economy. Its share is 12 percent of the country's gross domestic product. The development of the logistics sector leads to the integration of Georgia into the global logistics network and its effective connection with the world's leading markets. Logistics is one of the main factors determining the competitiveness of regions and companies, which directly affects their successful positioning in the global market. Developed logistics provides high-quality service, cheap and efficient supply network, which is a necessary condition for increasing competitiveness both for Georgia as a whole and for productions operating in the country. The article discusses problems in the forwarding service complex of Georgia, which are divided into three main groups: deficiencies in the management system, deficiencies in the production sector, and deficiencies due to external factors. Is analyzed the necessity of the concept of a modern transport and forwarding complex system, which determines the following goals and means for its further development. Keywords: logistics, hub, forwarding, index, infrastructure, business.