Three Seas Economic Journal

BILATERAL INVESTMENT AGREEMENTS OF GEORGIA: THREATS, CHALLENGES AND OPPORTUNITIES

Shota Veshapidze — 2024-12-27

Relevance of the topic. Bilateral investment treaties are an extremely important form of investment promotion. The purpose of signing these agreements is to deepen the economic ties between the countries. No matter how big the role of investments is in the economy, it is necessary to regulate them. It is necessary to pay more attention to the discussion of this issue from an academic point of view. Especially, taking into account the adverse experience that Georgia received from the judgments against it from international arbitrations. It is important to facilitate the legal study of various norms and protective measures for foreign investments, taking into account the agreements. Insufficient consideration of regulations and relevant norms regarding the issue, considering the development of investments, may even lead to financial responsibility. The purpose of the article. To evaluate the effectiveness of bilateral agreements. Scientific novelty of the paper. The issue is very relevant and its practical purpose is the possibility of using the obtained results in the educational process during the study of the mentioned topic, through analysis. Identifying advantages, disadvantages, as well as opportunities and threats, developing relevant recommendations in terms of effectiveness. Accepting the challenges in this field is a necessary condition. The mentioned issues have practical value and potential impact on the field and wider society. Methodology. Based on the SWOT analysis of bilateral investment agreements, their importance and socio-economic aspects are evaluated. The importance of investment agreements, foreign experience of their regulation is reviewed. As well as an innovative SWOT analysis of the concluded bilateral investment agreements. Discussion. An in-depth analysis of this issue leads to the promotion of the foreign investment regulation process. It will also give Georgia the opportunity to establish more effective approaches for attracting and protecting foreign investment capital. Conclusions. Taking into account the recommendations based on the scientific analysis proposed in the work will contribute to the improvement of the investment environment, thus raising employment and living standards, and the economic situation of Georgia.

EVALUATION OF BLOCKCHAIN IMPLEMENTATION EFFECTIVENESS

Andrii Diakiv — 2024-12-27

This study focuses on the effectiveness of blockchain technology implementation. Blockchain technology is widely regarded as transformative due to its potential to enhance transparency, security, and operational efficiency. This has led to the widespread adoption of blockchain technology across various companies and industries. However, an increasing number of companies are facing challenges in developing qualitative and effective approaches to evaluating the efficiency of implementing this technology. Therefore, it is necessary to develop specialized approaches to assess the effectiveness of blockchain technology implementation. The research subject encompasses the approaches to evaluating the effectiveness of blockchain technology implementation, such as Return on Investment (ROI), Net Present Value (NPV), and Total Cost of Ownership (TCO). By examining case studies and real-world implementations, the study evaluates the application of traditional economic metrics, such as ROI and TCO, and expands the evaluation framework to include intangible benefits like transparency and customer trust. The study also addresses challenges such as scalability, privacy, and legislative impacts, offering solutions based on MCDA and a multi-dimensional assessment approach. The integration of these methods allows for a holistic evaluation of blockchain’s effectiveness. The primary aim of this study is to identify robust evaluation tools that organizations can utilize to determine the feasibility and benefits of blockchain adoption. By bridging gaps in existing assessment models, the research provides a comprehensive framework to streamline decision-making processes. The key findings demonstrate that while ROI remains a critical metric, it must be complemented by broader economic and non-economic indicators to achieve a thorough evaluation. The strategic alignment of blockchain technology with organizational goals is essential for maximizing its benefits. The research concludes that adopting a flexible and standardized evaluation methodology is vital for accurately assessing blockchain technology’s impact. This includes integrating financial, organizational, and technological indicators into a unified framework. Future research is recommended to explore industry-specific metrics and the inclusion of qualitative impacts such as transparency, trust, and customer satisfaction. The study highlights that blockchain’s effectiveness depends on addressing technical, operational, and external challenges while leveraging its transformative potential to drive innovation and efficiency. In conclusion, this research demonstrates that a holistic evaluation framework with integrating quantitative financial metrics with qualitative factors such as transparency, trust, and regulatory considerations is essential for accurately assessing blockchain implementation effectiveness and guiding strategic decision-making.

OVERCOMING BARRIERS TO ARTIFICIAL INTELLIGENCE ADOPTION

Vasyl Ivchyk — 2024-12-27

The purpose of this study is to explore the barriers to the successful implementation of Artificial Intelligence (AI) in organizations, focusing on psychological, organizational, and ethical challenges. The aim is to identify strategies to overcome resistance and foster trust, ensuring a seamless integration of AI technologies into business operations. Methodology. The research is based on a comprehensive review of existing literature and real-world examples. It employs a qualitative approach to analyze the root causes of resistance to AI adoption, emphasizing psychological fears, organizational misalignments, and ethical concerns. Strategic frameworks and best practices are proposed to address these challenges effectively. Results. The findings reveal that psychological resistance arises from fears of job displacement and mistrust in AI systems, while misaligned strategies and cultural inertia drive organizational resistance. Ethical concerns such as bias, accountability, and privacy violations exacerbate resistance. Strategies such as fostering transparency, aligning AI initiatives with business goals, implementing robust governance, and addressing ethical challenges can significantly reduce resistance and enhance AI adoption. Practical Implications. The study provides actionable insights for business leaders and policymakers to mitigate resistance to AI implementation. By fostering transparency, offering training programs, and ensuring ethical compliance, organizations can build trust among stakeholders. Legal measures and stakeholder engagement are highlighted as critical components for long-term success in AI integration. Value / Originality. This research offers a holistic framework for addressing resistance to AI adoption, integrating psychological, organizational, and ethical dimensions. By bridging gaps between theory and practice, it provides unique insights to support organizations in leveraging AI’s transformative potential while ensuring alignment with societal and ethical values.

ECONOMIC DETERMINANTS OF SMALL BUSINESS DEVELOPMENT IN THE LVIV REGION: INSIGHTS FROM REGRESSION ANALYSIS

Mariana Komar — 2024-12-27

Purpose. This research aims to investigate the factors influencing small business development in the Lviv region of Ukraine. Specifically, we seek to identify the impact of economic indicators such as Gross Regional Product (GRP), Foreign Direct Investment (FDI), and foreign trade participation on the number of small enterprises. Methodology. A quantitative research approach was employed to analyze the relationship between the aforementioned variables. A multiple linear regression model was constructed using data from the State Statistics Service of Ukraine and the Main Department of Statistics in the Lviv region. The model was estimated using statistical software to determine the significance and magnitude of the coefficients. Results. The empirical analysis revealed several key findings. Firstly, GRP and FDI were found to have a positive and statistically significant impact on the number of small enterprises in the Lviv region. This suggests that economic growth and foreign investment can stimulate entrepreneurship and business creation. Secondly, foreign trade participation exhibited a negative relationship with small business development. This finding may be attributed to factors such as increased competition from imported goods or the dominance of large-scale enterprises in the region's export sector. Practical implications. The results of this study have important implications for policymakers, business owners, and other stakeholders in the Lviv region. Policymakers can utilize these findings to develop targeted interventions aimed at fostering a conducive environment for small business growth. For instance, policies that promote economic growth, attract foreign investment, and support local entrepreneurs can contribute to the region's economic prosperity. Small business owners and entrepreneurs can benefit from the insights gained through this research by understanding the factors that drive growth and the challenges that may hinder it. By making informed decisions about their business strategies and operations, they can increase their chances of success. Value / Originality. This research contributes to the existing literature on small business development by providing empirical evidence on the factors influencing small business growth in a specific regional context. The use of a quantitative approach and the application of a multiple linear regression model enhance the rigor and reliability of the findings. Additionally, the study highlights the complex interplay of economic factors and their impact on small business development, offering valuable insights for policymakers and practitioners.