Investment capacity of the country’s economy (the case of Georgia)
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Date
2021
Authors
Journal Title
Journal ISSN
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The article discusses the factors of the functioning of the economy - land,
capital, labor. Particular attention is paid to the issues of investment in these
factors and their capacity. The idea of measuring the investment intensity of the
country’s economy is proposed – in qualitative and quantitative terms. In the first
case, we are talking about the content of investments in industry, agriculture,
construction, financial services, non-manufacturing, etc., in the second case, about
the volume of these investments. The hypothesis is put forward that excessive
investment in the country’s economy can cause the economy to overheat, as well
as contribute to the emergence of corruption in society and the economy, which
slows down its economic growth. The so-called “production possibilities curve”
can conditionally act as a limiter of excessive investments in the economy. The
upper point located outside the curve of production capabilities (inaccessibility)
can be conditionally considered a point indicating the inexpediency of excessive
investment.
Description
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Keywords
Investment; factors of the functioning of the economy; investment capacity; curve of production capabilities; overheating of the economy; corruption; investment policy
Citation
Economics and Business, №4, 2021, pp. 58-69