Page 65 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.81, # 1, 2024, pp. 65-75

ANALYSIS OF DIRECT FOREIGN INVESTMENTS IN GEORGIA

Khatia Udesiani , Dali Sologashvili 2
1

1 Ivane Javakhishvili Tbilisi State University, Tbilisi, Georgia

[email protected]
https://orcid.org/0000-0001-5788-1214
2 Akaki Tsereteli State University, Kutaisi, Georgia

[email protected]
https://orcid.org/0000-0001-7214-2903

https://doi.org/jestp.2024.81.01.01

Received: February 12; accepted May 16, 2024; published online July 26, 2024
ABSTRACT
Foreign direct investment is an important element of strengthening developing
countries, as it represents a source of knowledge, capital, technology in the country,
and also helps to stimulate the growth of the economy. Foreign direct investment
boosts national production, which means more jobs, more income, and lower prices
for local production. The article analyzes the special importance of foreign direct
investments for the economy and social condition of developing countries, including
Georgia, a country with the status of a candidate for the European Union. Georgia is
approaching the big family of the European Union, which is achieved through
consistent and gradual steps, following European principles and values. The candidate
status is an opportunity for Georgia to access additional financial resources, which
implies gradually access to those programs and instruments that are available to
countries in the process of joining the European Union. Economic benefits include an
increase in foreign direct investment. The article analyzes the dynamics of the volume
of foreign direct investment in Georgia, in various aspects, including country groups,
regions, EU countries and sectors. The purpose of the article is to evaluate the
economic and social role of direct foreign investments in Georgia and the advantages
of joining the European Union in the mentioned context. As a conclusion, the main
findings are formulated, the existing challenges are identified and relevant
recommendations are given.

Keywords: Foreign direct investments, European Union, Economic development,
Economic growth.

JEL Codes: F21

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