The Scientific Outline of M. Kotanyan Institute of Economics

The economic sector established within the Armenian section of the National Academy of Sciences of the Soviet Union was the first economic powerhouse ever created in Armenia that was later incorporated into the newly established National Academy of Sciences of the Soviet Socialist Republic of Armenia in 1943. In 1955, the sector was transformed into the Institute of Economics (Director A. Marukhyan), and in 1999 it was named after the academician of NAS RA M. Kotanyan.

The Institute had three departments: The Political Economy and The History of The National Economy, Industrial Economics, and Agricultural Economics. Simultaneously the Institute achieved significant results in the field of study of the economic history of Armenia and the Armenian history of economic thought. The history of Armenia in the XIX-XX centuries was systemized; the land relations and other sectors of the economy, finance, population, and social structure (M. Adonts, H. Tumanyan, M. Yeganyan, L. Ananyan) were analyzed.

In 1960, A. Arakelyan was appointed the director of the Institute. It was a new period in the research activities, scientific research, and training of scientists. The Department of the Effectiveness of Capital Investments as well as the Economic And Statistical Laboratory were opened. Arakelyan published numerous works on issues related to political economy and the theory of socialism. In 1964-1965 departments of Self-Financing and Material Interest, and Application of Mathematical Methods in Economics were opened. The institute started to investigate topics that were focused on the long-run economic development. Several books were published regarding the reproduction and efficiency of fixed assets, management of scientific and technological progress and its incentives, cost accounting (Arakelyan, M. Kotanyan, R.Mirzoyan, L. Ananyan), assessment of the economic efficiency of capital investments (B.Egiazaryan), issues of transport development (K. Khurshudyan).

The research topics in the Institute were in line with the most relevant issues of the Soviet economy. In the 1960s with the application of mathematical methods the aggregate indicators of the Armenian SSR’s economy were developed, as well as economic – mathematical model of optimum asset utilization and production capacity (VA Dadayan, A. Harutyunyan, S. Sukiasyan), and in the 1970s then contemporary issues of Economics were studied (M. Kotanyan, Yu. Matevosov, A.Mhitaryan).

In conjunction with ASSR CSO Institute of Economics Academy (under the supervisor S. Margaryan) developed the first multi-sectoral balance of the Republic with the illustration of scientific and practical results in the monograph “Cross-industry ties of the national economy of the Armenian SSR” (1970). Furthermore, the economic assessment of the land fund of the republic was carried out for the first time (N.Manaseryan, Pososhnikova K., L. Adamyan).

Other research topics studied by the Institute include “Demographic And Employment Policy Development”, “Forecasting of Population Change” and “Human Resource Management”. In 1968, Moscow issued “The Expanded Reproduction of the Population and the Use of Labor Resources in the Armenian SSR” treatise was issued in Moscow that consisted of three volumes. The study of demographic problems and the accomplished research enabled the Institute to study the basis for new developments in urbanization, migration, and government regulation of the employment market.

Other research areas of the Institute include demography and employment policies, changes in population and labor resources management, and economic forecasting issues. In 1968 in Moscow, SSR collective three-volume work (V. Khojabekian guidance). on the theme of expanded reproduction of population and the use of labor resources in 1966-1985.

Academies of Sciences of RA and GDR signed a bilateral agreement in 1976-80. Was started a fruitful research collaboration, the results of which received high appraisal from both academies and were published in Russian and German.

Based on the detection and assessment of social-demographic and historical development characteristics it was forecast Armenia’s population demographic outlook in the long-term for the different phases. These, particularly, include the 1966-1985, 1971-2000, and 1979-2015 periods.

In the late 1970s investigations were made to the socio-economic development of complex issues and strategies of the republic. Reasonable recommendations were made making the transition of a solid economic planning system to target the traditional integrated design system.

In the 1980s based on core scientific assumptions economic concepts such as production forces and production relations material interests and motives, and monetary issues were studied. Furthermore, the economic issues of scientific and technological advancement were also studied in a nuanced way. In this context, the work of M. Kotanyan, director of the Institute from 1978, entitled “Scientific-technological Revolution and the Theory of Economics” is worth mentioning.

The 1990s were the years of transition for the Armenian economy. The researches were mainly focused on the self-regulation of the provinces and the main direction of the economic activities were forecasted which deemed as an inextricable part of the strategy of the national economic security. Furthermore, the issues related to the economic activities in Sevan Lake were studied from the aspect of environment-friendly usage of the resources of Sevan Lake and revealing new and alternative methods of energy production. In addition, the issues regarding the development of tourism were studied.

In 2002, the comprehensive monograph of academician V.E. Khojabekyan entitled “The Reproduction and Dynamics of the Population of the RA on the Brink of the 21st Century” was published.

From 2007 a new era commences in the scientific life of the Institute. Everything started with the decree of the Government of the RA to merge three economic institutes with the M. Kotanyan Institute of Economics. Those economic powerhouses were “The Institute of Economic Researches”, “The Research Institute of Agricultural Economy” and “The Institute of Management and Economic Reforms”. Vladimir Harutyunyan became the director of the new Institute. The merger was indeed challenging and required stamina to deal with various organizational issues which Prof. Harutyunyan tackled with honor.

Under the leadership of V. Harutyunyan tax-related issues were studied by the Institute in detail. The research groups led by Prof. Harutyunyan were studying tax issues from all aspects and in consideration of the best international experience. It is worth noting the book of Prof. Harutyunyan (co-authors T. Harutyunyan and D. Harutyunyan) entitled “Taxation and Levying”. It deals with studying the improvement of tax legislation in Armenia in consideration of the experience of similar reforms implemented in other countries.

Institute paid particular heed to the issues of the global financial crisis. In this sense, the books of Prof. Harutyunyan entitled “Global Financial Crisis” and his other book co-authored by V. Khachatryan entitled “Crisis: Macroeconomic Situation in the World and Armenia” are pioneering works that study the peculiarities of the application of concrete macroeconomic tools in the economy of RA. The book also studies the possible impact of different macroeconomic policies on the economy of Armenia.

Among the recent initiatives of the Institute are studies dedicated to the general history of economic thought with a special emphasis on the development of Armenian economic thought. In particular, the Institute published “The File of the Prominent Economists” book consisting of two volumes. It was published in 2009 and republished in 2012. Moreover, the “Armenian Economists” oeuvre was published in 2010. The latter is a comprehensive analysis of biographies of prominent Armenian economics from the XIX century in chronological order. Other contributions to the field were reflected in the books entitled “Pages from the History of Armenian Economic Thought” and “Contemporary Armenian Theory of Economics”, both published in 2011.

The issues of the activities of the real sector of the economy were always in the pivot of the Institute. The study of these issues includes but is not limited to the agricultural sector, mining, and foreign trade. The leading scientists of the Institute published a plethora of books and articles dedicated to those issues.

Among the major and critically important initiatives of the Institute is the research on the economic losses that Armenian people underwent as a result of the Armenian Genocide. In particular, the Institute initiated research on the following topic: “The demographic and material loss of the Armenian people during the Genocide and the ways of its reparation” publishing a compendium of scientific articles.

In recent years publishing activities were further thrived in the Institute. The research plans are fully being implemented and the annual publication of the Republican Conference Proceedings “Contemporary Social and Economic Development Issues in the Republic of Armenia” became a platform for Armenian scientists to publish their pieces on Macroeconomic issues, finance, and development.

After V. Harutyunyan’s untimely death (2022) the director of the Institute was appointed D. Harutyunyan, who continued the rooted good traditions of the Institute’s scientific life, but at the same time, D. Harutyunyan brought a wave of new ideas and measures that brought front the young generation of scientists of the Institute. D. Harutyunyan was succeeded by M. Manucharyan, who took on the duties of the institute director in 2023. M. Manucharyan further solidified the new directions of the Institute’s development, which are rooted in the promotion of foreign affairs, new innovative takes on research, etc. As of 2024, the Institute’s scientific results are being published in Scopus and WOS indexed international journals, which further solidify the place of economic research of Armenian scientists in world economic literature.