Economic and legal aspects of property: Case of Georgia (Republic of)

From the point of view of jurisprudence, property in the first place means the ownership of an object by a particular subject, which is fixed through a legal document. The construction of "appropriation-possession-disposal-use", which has more legal weight, is also in use. From the standpoint of economic science, ownership is primarily relationships, as a result of which material welfare is created which should provide income. In other words, property in the process of its functioning should produce wealth and generate income.

 The logic of the development of property relations dictates that only one form of property can be dominant, around which there are built other forms of property (in a market economy - private property, which is implemented by means of various forms (stock, group, individual). The erosion of dominant forms of property leads to vacillation even in economic policy.

The following data is used in the analysis: a) the population size of the Republic of Georgia; b) the dynamics of GDP; c) the rate of unemployment in Georgia; d) the foreign trade balance of Georgia. Statistical data are analyzed as a dynamic series, using mid-year and quarterly indicators, indicators of the beginning of the year and end-year indicators.

 An important aspect of the analysis of property is the connection of its form with the efficiency of its functioning. None of the forms of property automatically lead to an increase in production efficiency and effectiveness of the economy in general. The post-privatization period in the post-Soviet area is an example of this. The process of privatization of state property in Georgia had a number of shortcomings that eventually were reflected in ineffectiveness of privatized enterprises, which resulted in an insufficient growth rate of GDP.

A number of statistical indicators are proposed that would really evaluate the results of the work of enterprises and the economy as a whole – labor productivity, capital productivity, and efficiency of the use of factors of production.

JEL: K1; K10; K11

Key words: Property; Economic and Legal aspect of Property; Property and Efficiency.