The Institute of Economics conducts studies on several topics within the framework of its four, main scientific directions:
- Macroeconomic Problems and Finance
The Foreign Economic Policy Framework of the Republic of Armenia and Its Main Directions (Head of Scientific Topic: PhD in Economics, H. S. Asatryan)
The intensifying competitive struggle in the global market is accompanied not only by the strengthening of individual countries’ economic influence within specific regions, but also by the frequent clashes of interests among those states, as they strive for regional and global dominance and seek to consolidate their positions. Developing countries, too, become arenas of this competition. Owing to their insufficient levels of economic development, underdeveloped financial infrastructures, dependence on raw materials in the world market, limited technological capacity, and insufficient adoption of modern technologies, these states attempt to withstand the rivalry of the “global powers” by pursuing integration with neighboring countries.
Although regional economic integration initiatives among developing countries have generally not yielded significant success, their continuation faces few obstacles. For the Republic of Armenia, this issue has become even more pressing with the emergence of new approaches to cooperation with neighboring states, which require further substantiation within the framework of a renewed foreign economic policy. At the core of this framework should lie the paradigm of realizing both the relative and absolute advantages of foreign trade. Regional integration unions (Armenia being a member of only one such union, the Eurasian Economic Union (EAEU), while the global average is six per country) are, on the one hand, a unique manifestation of globalization, and on the other, act as “counterparts” to international economic organizations, seeking to create semi-enclosed zones of globalization. Currently, in contrast to globalization trends, there is a growing emphasis on regionalization, manifested in the so-called “friend-shoring” approach, whereby trade partners are primarily selected among countries with shared values (historical, cultural, economic, political, and otherwise).
Given Armenia’s regional specificities, both globalization and regionalization pose a wide range of challenges for the country. The need to address these challenges underscores the relevance of this topic and justifies its academic and practical significance. The primary objective of the study is to design various scenarios and algorithms for Armenia’s cooperation with different economic unions and third countries, including within the framework of the EAEU, as well as with ASEAN, APEC, SCO, BRICS, and other economic groupings and their member states. The study also seeks to propose approaches for advancing these partnerships, guided by Armenia’s priorities for economic development and expanding trade turnover.
The research topic is in line with the mechanisms for implementing “economic diplomacy” outlined in Section 1.1 “Foreign Policy: New Approaches in Diplomacy” of the RA Government’s 2021-2026 Program, as well as with the requirements of Section 2 “Economy: Foreign Economic Policy and Export Promotion.”
- Problems of the Real Sector of the Economy
The Introduction of the Circular Economy Model as a Necessity for Enhancing the Food Security of the Republic of Armenia (Head of Department: PhD in Economics, Associate Professor, M. G. Manucharyan)
One of the most strategically significant issues for any country is the food security of its population. This challenge is particularly acute in countries whose territorial, climatic, and economic conditions do not allow the satisfaction of demand for food products solely through domestic production. Globally, the intensification of pandemics, wars, natural disasters, and climate change has created new threats to food security. It can be argued that food security has become one of the most critical challenges of the modern era, and this reality is equally characteristic of the Republic of Armenia.
Given population growth, the importance of food security, climate change, and the scarcity of natural resources, the development of a circular economy has become increasingly essential. Analysis of the agri-food chain reveals that up to one-third of food produced for human consumption is lost or wasted. Linear consumption has reached its peak. In contrast to the linear economy, the circular economy offers several advantages with operational implications at strategic, microeconomic, and macroeconomic levels. This reality underlines the necessity of introducing the circular economy model in Armenia’s agricultural sector, which determines the timeliness and relevance of the present study. The transition to circular economy models is global in scope, and the advantages of this paradigm are becoming increasingly evident.
The aim of this research is to study the directions of circular economy system development and to substantiate the necessity of introducing such a model for enhancing the food security of the Republic of Armenia. To achieve this goal, several tasks are set: to examine the challenges of the circular versus linear economy, to address the fundamental issues of food security, to present the importance of ensuring food security, and to justify the advantages of the circular economy paradigm from the perspective of strengthening food security.
The research topic is aligned with Section 2.2 of the RA Government’s 2021-2026 Program.
The Strategy for the Development of Science as a Crucial Precondition for the Sustainable Development and Security of Armenia’s Economy (Head of Scientific Topic: PhD in Economics, Y. A. Hakobyan)
In recent years, interest in science has been gradually increasing in Armenia, extending across broad layers of society: from the private sector to various levels of governance. The Government of Armenia has initiated several support programs and measures for the scientific field, including increasing state budget allocations for science and introducing a new system for the certification of scientific personnel. Substantial institutional reforms have also been carried out: the State Committee of Science and the Higher Qualification Committee were merged to form a new entity – the High Committee of Science and Education. Some former functions of the State Committee of Science were transferred to the Postgraduate Department of the Ministry of Education, Science, Culture, and Sports.
However, despite these radical structural changes, a comprehensive strategy for the development of science has not yet been initiated. Such a strategy should articulate the key challenges facing the sector, define possible (including phased) solutions, and assign responsibility to relevant agencies. The last official strategy for the development of science in Armenia was adopted in June 2011, but since then no further steps have been taken to update or extend it. This absence of continuity is problematic from the perspective of stable development, as a well-designed strategy serves as a vital prerequisite for sustainable progress in the scientific sector.
Accordingly, there is an urgent need to identify the major challenges confronting the Armenian scientific sector, to examine the experiences of both developed and developing countries, to analyze the legal and institutional frameworks governing science in neighboring states, and to study relevant strategies and policy documents. On this basis, the research aims to design a template for a science development strategy for Armenia, which can be submitted to the relevant authorities and may serve as a foundation for the formulation of an official strategy in the future.
The research topic corresponds to Section 4.4 “Science” of the “Human Capital Development” chapter in the RA Government’s 2021-2026 Program.
- Development of the Services Sector and Socio-Demographic Issues
The Adoption of Artificial Intelligence and Digitalization Achievements as a Key Factor in the Technological Development of Armenia’s Economy (Head of Department: PhD in Economics, Sh. P. Poghosyan)
Advances in information and communication technologies have created new opportunities in the labor market, leading to the widespread application of artificial intelligence (AI). On the one hand, AI contributes to the creation of new jobs; on the other hand, it displaces certain traditional occupations. Currently, AI has made significant progress in professions that involve non-routine and cognitive tasks, typically performed by medium- and highly-skilled workers. At the same time, educated employees are generally more adaptable, more willing to learn new technologies, and more likely to participate in upskilling and reskilling programs, enabling them to better exploit the opportunities presented by AI in the labor market.
AI is becoming increasingly capable of automating tasks that require coordination, reasoning, and communication, which could impact employment in these areas. At the same time, it can help bridge skill gaps, accelerate workforce development, and allow workers to devote more time to critical and analytical thinking.
Within the scope of this study, the following issues will be examined: current perspectives on the adoption of AI technologies; recent labor market changes driven by technological development; the sectors most susceptible to automation; and digitalization processes across Armenia’s prospective economic domains. The research will also propose adjustments to labor relations, focusing on effective collaboration between humans and robots. The effective use of AI depends fundamentally on human-machine cooperation, which is essential for creating and enhancing new experiences for end-users.
The research topic corresponds to Sections 4.6 (“Labor and Social Protection”) and 2.3 (“High Technologies”) of the RA Government’s 2021-2026 Program.
- History of theoretical research and economic thought
Contemporary Developments in Economic Thought and Trends in Changing Economic Behavior under Digitalization (Head of Department: Doctor of Economics, Professor R. N. Sarinyan)
Within the scope of this research, the evolution of economic thought will be examined, with particular attention to its connection to contemporary processes in the national economy. It is important to maintain a clear perspective on the scholarly contributions of the Institute of Economics of the National Academy of Sciences of Armenia, as well as the diverse publications appearing across the Republic. These typically address a wide range of issues in Armenia’s economy at both the microeconomic and macroeconomic levels.
Nowadays, under the influence of information and communication technologies (ICT), human activity is undergoing transformation across multiple spheres. Their active integration is fundamentally reshaping the economic behavior of both consumers and enterprises, altering expectations, goals, and motivations. Although the challenges of digital transformation are widely discussed in the academic community, the trends and future prospects of economic behavior under digitalization remain insufficiently studied. Moreover, the lack of empirical research makes the modeling of digital transformation’s effects on economic behavior particularly relevant in today’s context. The objective of the topic is to explore and evaluate the impact of digital transformation on economic behavior in the Republic of Armenia. To achieve this goal, the following tasks are identified:
- to examine the current trends and prospects of digital economy development in Armenia and compare Armenia’s digitalization level with that of other countries,
- to analyze the key factors determining the digitalization of economic behavior,
- to investigate the dynamics of the Armenian population’s economic behavior in the context of digital transformation, based on sociological research,
- to conduct an econometric analysis of the impact of digital tools on economic behavior.
This research topic is consistent with the RA Government’s 2021-2026 Program, particularly Section 2.3.