Abstract
The paper assesses the financial services in Georgia in the Cluster Theory context. The aim of the research is to identify the ways of the cluster, the dynamics of its variability, the growth rates as well as the realization of its potential and obstacles for it. The study investigates to identify the unity of the interrelated institutions involved in the financial services as being a necessary condition for the formation of the clusters in the sector. For the purposes of this work, a financial cluster is defined as a unity of sub-clusters, such as commercial banks, microfinance institutions, credit unions, insurance companies, pension funds and the stock market. The efficiency of financial services is estimated on the bases of concentration per location, employment, education accessibility, and the volume of capital investments, GDP growth rate, the average profitability and the rate of innovation. It was determined that there is an incomplete form of financial services trade cluster in Georgia, which highly impacts the country's economy. In order to maintain its sustainable competitiveness, it is important to develop viable policies to promote the organic growth of the cluster.
Highlights
Financial sector development is a vital component for the economy of Georgia
A financial service cluster is defined with a nar row focus of The Cluster Observatory, which is based on the statistical classification of economic activities in the European Community established by the Euro stat (NACE 2.0)
As a result of the research, we can assume that the financial cluster of Georgia exists and is at the stage of its development
Summary
Financial sector development is a vital component for the economy of Georgia. It is one of the most important factors contributing to the creation of new jobs as well as for the ensuring of the sustainable economic develop ment and innovations.the financial sector has a positive spillover effect on other sectors – many cultural, social, health care and charitable projects benefit from the contribution of the sector. Financial sector development is a vital component for the economy of Georgia. It is one of the most important factors contributing to the creation of new jobs as well as for the ensuring of the sustainable economic develop ment and innovations. The financial sector has a positive spillover effect on other sectors – many cultural, social, health care and charitable projects benefit from the contribution of the sector. Through the initiatives and the financial support of the country’s largest commercial banks, several social projects in the different fields had been launched. Financial institutions started growing and the demand on the highly specialized workers increased. Financial institutions started Annexation of the related sub sec tors in the field
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