FDI, FDI’s Impact on Economic Growth and the Investment Environment in Georgia

Abstract

Georgia, with its open policy towards foreign investment flows, was one of the first countries in the Post-Soviet space. From the day of gaining independence, FDI has become the most important indicator of the country, and the assessment of the volume of foreign investment flows carried out in the country, statically or dynamically, has not lost its relevance to this day. Present article explores the volume of foreign direct investments made in Georgia, in dynamic; From the total indicators, in terms of geography, the largest investor countries are identified; In the period 2013-2022, the structure of FDI is expanded according to components and the percentage distribution of share capital, reinvestments and debt obligations from the total indicators is highlighted; The impact of FDI on economic growth indicators has been determined using correlation-regression analysis. The article also provides global figures for foreign direct investment, including countries receiving the largest FDI flows; In order to assess the investment environment, in dynamics, the sovereign credit ratings of Georgia evaluated by the leading rating companies are presented. Statistical observation, collection-grouping and analysis techniques and methods are used in the research process.