Economic Regulation Research Articles

About the necessity of legal regulation of the economy of Georgia

The use of mechanisms and tools of legal regulation of inclusive economy in Georgia should significantly reduce the discord between some undesirable trends of globalisation and social justice, and support sustainable development of the Georgian economy. At the current stage of development, the Government of Georgia has to deal with two hardest challenges in economy. These are the adaptation to economic regulations of the EU and the maintenance of the country’s economic security. The simultaneous solution to the problems is possible only if the intercompatibility of social justice and inclusivity of economy is achieved. The current academic work analyses the existing socio-economic challenges in the country, based on the data generated by the National Statistics Office of Georgia. The research shows that despite a number of some positive steps taken in the direction of inclusiveness, a number of significant problems remain in the field of fair distribution of public resources as well as in the rational management of natural and human resources. Only through legal regulation of inclusive economy it is possible to improve the living environment, promote innovative entrepreneurship, enhance social security and medical services, reduce poverty, create jobs, etc. Keywords: inclusive economy, legal regulation, public good, property, employment and unemployment, social security.

Использование цифровых технологий в сфере капитального строительства и правовые вопросы

The article discusses topical issues of the introduction and use of digital technologies in the field of capital construction. It is shown that there is an objective need for capital construction participants to use digital technologies in their activities; secondly, the need for widespread use of digital technologies also forms the economic value of digital assets and digital rights. The rapid development of high technologies has inevitably led to the need for regulatory regulation of the digital economy, the transfer of the fund of regulatory and technical documentation in the field of capital construction to a digital format. The use of digital technologies, in particular smart contracts and blockchain technologies, will allow to develop and simplify the interaction of participants in the field of capital construction.

PENGARUH VARIABEL MAKROEKONOMI TERHADAP DANA PIHAK KETIGA PADA BANK KONVENSIONAL DI INDONESIA

This study aims to determine the effect of macroeconomic variables on the collection of third party funds at conventional banks in Indonesia. The data used is monthly time series data from January 2017 to December 2022. The method used in this study is the Vector Autoregression (VAR)/Vector Error Correction Model (VECM) method. However, in choosing between the two methods, stationarity test must be done first. The variables used include inflation, BI rate, crude oil price, and gold price. The results of the study show that the inflation variable has a positive influence, while the BI rate, crude oil price, and gold price variables have a negative influence on third party funds of conventional banks in Indonesia. This research is expected to be applied to banking policy makers with the aim of being insightful to be able to adjust policies when there is instability in macroeconomic variables and for economic policy regulators in determining policies that can stabilize the banking system. In addition, it is used as knowledge for customers to make better decisions regarding investment portfolios with the aim of identifying risks based on macroeconomic conditions.

The AI Revolution: A New Paradigm of Economic Order

Abstract Artificial intelligence (AI) constitutes a new technological revolution that has far-reaching, somehow paradigmatic implications for the economy and as well as for the society – for good and for evil. Given the specific properties of artificial intelligence this article analyses the economic consequences of AI on productivity and growth, the distribution of income as well as on firms, markets, and competition. It argues that artificial intelligence is creating a new economic order that requires new approaches to economic policy and regulation. Issues of how to maintain competition, protect consumer rights, promote AI literacy and preserve ethical standards are at the center of a holistic AI governance.

Policy uncertainty, mergers, and acquisitions in the South African business environment

ABSTRACT This study examines policy uncertainty on mergers and acquisitions (M&A) in South Africa, emphasising the extensive regulatory review by the Competition Commission under the ‘public interest consideration’ criterion. It aims to identify the cost implications and uncertainties associated with M&A transactions to propose measures to reduce these uncertainties. Utilising qualitative methodologies, the study gathers empirical evidence through interviews with companies and competition lawyers involved in the M&A processes. The findings reveal significant concerns about economic uncertainty, merger control, and policy and regulation impacting investment decisions. Policy uncertainty, particularly in the context of merger regulation, imposes substantial cost implications and delays on M&A activities, negatively affecting investment, growth, and economic development. It emphasises the necessity for a regulatory framework that minimises disruptions and costs to business participants. The findings suggest that addressing policy uncertainty and streamlining regulatory processes are crucial steps towards enhancing South Africa's attractiveness as an investment destination and fostering economic growth and development.

A Study on the Design of Incentive Contracts for Platform Economy Regulation Based on Dual Principal–Agents

A system of incentives can be established to encourage several parties to unite as a community of interest and become jointly committed to the platform economic governance. The platform economy involves progressively more complex subjects of interest and relationships, which are not the typical principal–agent one-time cooperative relationship. This study investigates the problem of regulatory incentives in the platform economy, specifically focusing on the relationship between the government, platform enterprises, and merchants. It analyzes this issue under conditions of asymmetric information by constructing and solving a dual principal–agent model. The findings indicate the following: (1) the government’s incentives and regulatory mechanisms can be considered as interchangeable to some extent, with decisions made by evaluating their respective costs; (2) the government’s optimal incentives and regulations ultimately shape the self-regulatory behavior of merchants through platform enterprises; and (3) the optimal level of incentives for both the government and the platform enterprise is influenced by factors such as the ability coefficient, the social transformation coefficient, and the merchants’ reliance on the platform enterprise. Additionally, the optimal effort level of the platform enterprise and the merchants increases with higher levels of the regulatory effort, risk sensitivity coefficient, and ability coefficient. A win–win scenario and a long-term, stable cooperative partnership can be reached by the three parties under the ideal incentive intensity. The study’s conclusions can serve as a theoretical foundation and support for the creation of incentive contracts for platform economy regulation.

PANCASILA AND MANAGEMENT OF MONOPOLISTIC COMPETITIVE MARKET IN THE STUDY OF THE NATIONAL CRIMINAL CODE NUMBER: 1 OF 2023 AND CHINESE FOREIGNERS

In Indonesia, the National Criminal Code (KUHP) is based on the principles of Pancasila. This paper analyzes the legal and ethical frameworks guiding market practices in Indonesia, while examining the intersection of national legal standards and the influence of foreign participants in the economy. The research contributes to the understanding of how the integration of ideological values and legal regulations is integrated within the context of Indonesia's national Criminal Code Number 1 of 2023, particularly in relation to Chinese foreigners. This study provides insights into the legal, ethical, and economic practices guiding the management of monopolistic competitive markets in the study of the national criminal code number 1 in 2023 and China's foreign constitution. The analysis technique used is a qualitative approach that examines laws and regulations as reflections of Pancastila values, comparing them with Chinese foreign laws to understand how Pancasola principles can be applied to resolve monopoly cases. The study also examines whether the alignment of antitrust laws and economic democracy with Pancasilla leads to tangible improvements in market fairness and societal well-being. This research could provide insight into the practical implementation of ideologies in economic regulation and their impact on fostering a more equitable and transparent economic environment.

Financial Analysis of China Duty-Free Group under the Framework of Harvard Analysis

Due to the COVID-19 in 2019-2022, global resident home quarantine, the economic downturn has led to lower household consumption levels than those before the epidemic, but with the economic and political policy and regulation and the availability of vaccines. Global COVID-19 is essentially over, at this time, the tourism retail industry is the main driver of economic recovery. In the tourism retail industry, China's duty-free industry is also a giant in the international retail industry. China Duty-Free Group has industry advantages, this article is based on the financial situation of China Duty-Free Group under the framework of Harvard analysis. Through the Oriental Fortune network, The National Bureau of Statistics of China, The China Immigration Bureau, statistic Data analysis on the China Duty-Free Group's environment and financial situation to analyze the development status and prospects of China Duty-Free Group, Conclusion for China Duty-Free Group after COVID-19 and acquisitions this year, the financial indicators in the capital increase have decreased. But this does not affect the dominant position of China Duty-Free Group in the future development, suggestions that China Duty-Free Group should hold the first position in China's duty-free industry in China's future development, from the Asian market to the international market in the global duty-free industry, make the full use of assets to expand their market share in the global tax-free industry.

Increasing Tourism Potential through Natural Resource Management and Development of Tourism Packages in Building Independence and Productivity of the Ngulungwetan Village Community

PPK ORMAWA is one of the MBKM activities held by the government to support student education so that it can be directly conveyed to the Indonesian people through students. The ORMAWA PPK activity is an activity that has 3 program aspects, one of which is Promotional Media, Services, and Tourism Village Product Requirements. Ngulungwetan Village is a tourist village where this village is also one of the villages where the average community has a low level of awareness of the potential of tourist villages. So with the tourist attraction of beach camping as a tourism village product in Ngulungwetan Village, now the community and pokdarwis (tourism awareness groups) can manage tourism well. Camping tourism uses Minister of Tourism and Creative Economy Regulation Number 7 of 2021, the KBLI group is included in the low-scale business category which must have a business permit in the form of a business registration number (NIB) (KEMENPAREKRAF, 2021). This service aims to increase the attractiveness of local and foreign tourists because there are tourist destinations in Ngulungwetan Village. The results obtained are that the ORMAWA PPK Team has created this program. With this program, it is hoped that it can increase the attractiveness of the community in Ngulungwetan Village in the world of tourism. So, with this program, it can improve the management of the tourist attraction of Kebo Beach, Ngulungwetan tourist village, especially beach camping as a superior product of the tourist village.

FINANCIAL AND ECONOMIC ASPECTS OF CREATING SOURCES OF SHARED WATER USE IN RURAL COMMUNITIES

The purpose of the article is to study the financial and economic aspects of creating sources of shared water use in rural communities, substantiating their feasibility, importance for providing the population with high-quality drinking water and sustainable economic growth.|The article states the fact of deterioration of water supply in rural areas both in quantitative and qualitative aspects. The way out can be seen in the solution of issues regarding the use of underground water, which is better protected than surface water resources, by increasing the number of sources of shared water supply. It has been substantiated that as a result of free water use, rural communities can receive such advantages as the improvement of the quality of drinking water, the efficiency of water resources, use the reliability, security and stability of the water supply source. The measures of financial and economic regulation of the use of groundwater, among which the diversification of funding sources for the renewal of water management infrastructure facilities, the attraction of credit and grant funds to renew the technical and technological base of water management enterprises, and to improve monitoring procedure for the extraction of groundwater from deep wells, have been systematized.The article reflects the results of a survey conducted in order to find out the opinion of the respondents regarding the sources of water intake, the presence of interruptions in the water supply of populated areas of Chernihiv Oblast, the need to create shared water use facilities in the community and the sources of funding for their creation. The vast majority of respondents have reported that in their communities they use wells, their own boreholes and there are interruptions in water supply, there are problems with wells drying up.

Теоретико-методичне забезпечення оцінки сталого розвитку сільськогосподарських підприємств

The article addresses the pressing issues of sustainable development for agricultural enterprises in a changing external environment, particularly under the influence of military actions. The study presents a retrospective analysis of sustainable development’s theoretical foundations, including economic, social, and environmental components. Based on the systematization and generalization of approaches to defining the concept of sustainable enterprise development, sustainable development is proposed to be understood as a process that ensures stable growth, the reproduction of all enterprise subsystems, and the achievement of positive results in three key areas (economic, environmental, and social) through effective internal management and the application of progressive economic and legal regulations at the state level. The study substantiates the importance of ensuring the stable functioning of enterprises through effective internal management and the application of progressive regulations at the state level. It is necessary to develop a sequence of stages for evaluating the sustainable development of agricultural enterprises to eliminate obstacles in assessing the sustainable development of enterprises. This algorithm will provide a clear understanding of the main steps, stages of assessment, and the interconnections between sustainability components in the enterprise’s operation. Critical components of sustainability, such as financial, marketing, production, investment, and social aspects, which affect the stability of the enterprise, are identified. The following scale of the integral indicator is proposed: 0-0.25 (critical level of development), 0.26-0.50 (low level of development), 0.51-0.75 (medium level of development), 0.76-1.00 (high level of development) to determine the level of development of an agricultural enterprise. The research has revealed the critical thresholds beyond which the activities of an enterprise may be considered as being at a minimum level of sustainability, as well as reflecting the trends in sustainable development in a positive or negative direction. Keywords: sustainable development, enterprise development, sustainable development of agricultural enterprises, evaluation of enterprise sustainable development, integral indicator of enterprise sustainable development.

RESEARCH OF PROCESSES OF TRANSFORMATION OF THE ROLE OF THE STATE IN REGULATING ECONOMIC PROCESSES: LOGICAL-HISTORICAL ANALYSIS

The article aims to analyze the evolution of views on the state's role in regulating economic processes using the methodological approach of combining the historical and logical, constructing an objective process of modifying the economic system and subjectivizing it within the framework of the concepts of mainstream economics. The conditions for the transformation of theoretical views based on the determination of the influence of the basic parameters of the economic system are studied, among which the primary attention is paid to the characteristics of the competitive environment. The dialectic of the evolution of theoretical visions is presented as a transition from the dominance of supporters of market self-regulation (classical political economy) to a significant expansion of the functions of the state with an emphasis on the pluralism of approaches to the recognition of the most effective strategies for the implementation of economic policy with the selection of personalized views on the optimal system of its instrumental content. The logic of forming a two-factor model of macroeconomic regulation of the market economy based on historical relativity is revealed. It is shown that the state's acquisition of the role of a social center is a consequence of the delegation of part of its functions by economic subjects in the pursuit of realizing the interests of both the monopoly sector (it was freed from the need to eliminate the structural disparities created by it), and the non-monopolist sector and consumers (they received guarantees of protection competitive features). The stages in the dominance of liberal doctrines and dirigisme policies in the economic theory and practice of the late 20th - early 21st centuries were studied. The main task of modernizing the content of macroeconomic policy in the conditions of transferring the problems of optimizing the distribution of resources to the supranational level, the erosion of state sovereignty is outlined, which consists of finding individual national trajectories of a combination of integration into global economic structures and justified economic nationalism.

Challenges and perspectives of universal circular green economy in Georgia

The green economy is a priority factor for the sustainable development of the country's economy, which we can confidently consider as one of the important factors of economic development, strategic protection of the environment and social security of the population, which is unthinkable without the introduction and further development of one of its distinct and inseparable effective components, the universal circular green economy, because through it is possible to achieve the three most remarkable effects for the planet and humanity. The process of transformation of the traditional economy into a green circular economy, despite being a vital and critical necessity, has been a significant problem in all periods and still faces great challenges today. According to the Global Green Economy Index (GGEI), Georgia currently holds a not too bad position in terms of the implementation and development of a universal circular green economy, which in turn is an effective way to economic development, both in the direction of the production of renewable and recyclable resources, as well as the introduction and use of a wide range of biotechnologies and By preserving biodiversity. But, like all important state reforms, the introduction of a universal green circular economy and its further development requires a lot of effort and financial resources, both from the state and from all actors and business sectors interested in this issue, which are not immune to various challenges in its development and regulation. in stages. The paper analyzes the stages and challenges of the introduction, development and regulation of universal circular green economy in Georgia.

Market‐incentivized environmental regulation policy and company green transformation: An analytical perspective based on the cost transfer capability of companies

AbstractBased on the carbon emissions trading pilot policy in China, this paper takes Chinese A‐share listed companies from 2012 to 2020 as a sample, and analyzes the role of company's cost transfer capability (ECTC) in the mechanism of market‐incentivized environmental regulation policy (MERP) influencing company green transformation. This paper finds the following four primary results. First, ECTC significantly strengthens the green transformation driving effect of MERP in general. However, results based on the division of ECTC by percentiles show that MERP‐induced green transformation is more pronounced in the top 25% of companies, which distinguishes them from companies in the top 25%–50%, whose cost transfer capacity hampers MERP's contribution to the green transformation. Second, the level of regional economic development, emission regulation, and business reputation have heterogeneous influences on the moderating effect of ECTC. Third, the results based on the moderated mediation model show that ECTC can influence the green transition driving effect of MERP by moderating the two paths of risk‐taking ability and financing constraints of companies. Finally, there is a diffusion effect on the green transformation driven by MERP through cost transfer among companies in non‐pilot industries and non‐pilot regions.

Exploration of New Media Marketing Strategies Based on Content Marketing and Community Management

This study explores the competitiveness of multinational corporations from RCEP member countries in the context of global value chains. Through comprehensive analysis of the current situation of RCEP member country, it points out their crucial position in the process of globalization. Furthermore, this article delves into internal and external factors that affect the competitiveness of these companies, with a focus on internal factors such as corporate governance, technology research and development, innovation, human resources management, financial management, brand and marketing strategy, as well as external factors such as economic environment, policy and regulations, social culture, technological development, and supply chain management. Finally, this article proposes internal and external environmental strategies to enhance the competitiveness of RCEP member country. These strategies provide important guidance for the steady development of RCEP member country in the global value chain.

Regional Difference and Spatial Convergence of Land Use Carbon Emissions in Three Urban Agglomerations of Yangtze River Economic Belt

It is of great significance to explore the regional differences of land use carbon emission （LUCE） in the Yangtze River Economic Belt and the path of coordinated emission reduction for regional sustainable development. Based on the LUCE estimation method, this study scientifically calculated the LUCE of the three major urban agglomerations of the Yangtze River Economic Belt （Yangtze River Delta, middle reaches of the Yangtze River, and Chengdu-Chongqing urban agglomeration） from 2010 to 2020. Kernel density estimation and the spatial convergence model were used to study the dynamic evolution, regional differences, and convergence characteristics of LUCE. The results showed that： ① The carbon absorption of forest land, water areas, grassland, and unused land were relatively small in terms of carbon emissions from cultivated land and construction land. The carbon emission of construction land increased gradually, whereas the carbon absorption of four carbon sinks fluctuated little during the study period. ② The core density curves of different urban agglomerations showed different distribution patterns, extensibility, and polarization characteristics but generally tended to be balanced. ③ From 2010 to 2020, the LUCE of the Yangtze River Economic Belt as a whole showed the spatio-temporal characteristics of increasing first and then decreasing and high in the east and low in the west. The LUCE of the central cities of the three urban agglomerations were at the highest level steadily, and stable coupling mechanisms had not been established between the economic development level and the ecological environment. ④ The LUCE of the three urban agglomerations in the Yangtze River Economic Belt all had absolute β convergence and also had conditional β convergence under the model control variables such as economic development level, urbanization level, industrial structure, population density, and environmental regulation, etc., and the conditional convergence speed was greater than the absolute convergence speed in each region. The convergence speed of the Yangtze River Delta urban agglomeration was the slowest. The above conclusions provide support for the coordinated emission reduction path of the three urban agglomerations in the Yangtze River Economic Belt and are also conducive to actively and steadily promoting the realization of the goals of carbon peak and carbon neutralization.

Estimating the cost of equity for performance based regulation: Important consequences from finance theory

All forms of economic regulation rely on observing the regulated firm’s costs which necessitates estimating the firm’s cost of capital including the cost of equity. Performance-based regulation (PBR) combines increased efficiency incentives with explicit performance-achievement rewards. It is attracting both increasing academic attention and greater application in electricity regulation. The standard textbook approaches to the Capital Asset Pricing Model (CAPM) incorrectly describe the asset beta as simply a measure of risk. More correctly, it is a measure of risk per unit of expected return. This interpretation makes the use of the CAPM to determine allowed rates of return problematic. The incentives in Performance Based Regulation exacerbate this problem. Regulators who base part of their decision on "judgement" should rely more on that judgement and develop approaches that focus on regulatory, rather than market, outcomes.

Cylinder pressure reconstruction to compensate for crankshaft flexibility based on flexible crank model

Amid escalating economic demands and emissions regulations for internal combustion engines, an array of control strategies grounded in in-cylinder state feedback has been introduced and implemented. The exploration of cylinder state feedback has captured the attention of researchers, and one area of intense focus involves reconstructing cylinder pressure based on engine state information due to its cost-effectiveness. In this paper, we introduce a method for compensating crankshaft flexibility. This method encompasses a crankshaft dynamic model, a 17-dimensional input vector, the PCA (Principal Component Analysis) algorithm, and a signal-layer perceptron. This approach efficiently addresses the impact of flexible crankshaft deformation and ensures high accuracy. The results demonstrate that all R2 values for cylinder pressure signals reconstructed via the proposed method exceed 0.9997, with RMSE predominantly ranging between 0.4 and 0.6 bar. Furthermore, the error in Pmax calculation based on cylinder pressure signals is under 0.04 bar, LPP (Location of Peak Pressure) error is below 2°CA, CA50 error remains under 0.5°CA, and IMEPH error is within 0.3 bar. In summation, the presented method facilitates highly precise in-cylinder pressure reconstruction, satisfies the prerequisites for in-cylinder combustion state feedback.

AI and big data in economic regulation: A comparative analysis of China and the United States

This paper examines the application of artificial intelligence (AI) and big data in economic regulation within China and the United States, highlighting the differing approaches and outcomes. In China, the centralized governance structure allows for the swift and uniform implementation of AI-driven strategies, optimizing government strategies, and balancing economic growth with social equity. The National Development and Reform Commission (NDRC) and the People's Bank of China (PBOC) are key players in utilizing AI to forecast economic trends and stabilize the economy. Conversely, the U.S. employs a decentralized approach, with AI applications driven primarily by the private sector and academia. The Federal Reserve leverages AI for policy decisions, while private firms use predictive models to enhance market strategies. Big data analysis supports decision-making in both nations, but differing governance structures lead to unique challenges and benefits. This study compares the centralized and decentralized systems, assessing their impact on economic performance and policy flexibility. The findings provide insights into how AI and big data can be optimized for economic regulation, offering lessons for other countries in adopting these technologies.

Analysis of Factors Influencing Total Retail Sales of Consumer Goods in Hainan Province, China

The total retail sales of social consumer goods is a comprehensive reflection of a country's consumption capacity, consumption structure and living standard, which is of great significance for evaluating a country's economic vitality and social development level. In recent years, with the continuous expansion of the consumer market and the improvement of consumers' purchasing power, the total retail sales of social consumer goods has continued to grow, and its role in the national economy has gradually increased. However, there are many factors that affect the total retail sales of social consumer goods, including economic environment, policies and regulations, consumer behavior and so on. Under this background, this paper takes Hainan Province as the empirical research object, and selects per capita disposable income, rural residents' per capita disposable income, gross domestic product, resident population at the end of the year and local government's general budget expenditure as explanatory variables to analyze the factors affecting the total retail sales of social consumer goods. The results show that the average disposable income of rural residents and the general budget expenditure of local governments are significant factors affecting the total retail sales of social consumer goods in Hainan Province. Finally, the model is analyzed economically, and some conclusions are drawn, and some policy suggestions are put forward.