Foreign direct investment in Georgia in the era of geopolitical fragmentation: conceptual foundations and strategic challenges
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Samtskhe-Javakheti State University
Abstract
The article examines the impact of geopolitical fragmentation of the global economy on the volume and quality of foreign direct investment (FDI) in Georgia. Special attention is paid to the qualitative analysis of the RRSG paradigm, which includes four main dimensions, such as resilience, risk management, security and geo-economic advantages. The results of the study show that geopolitical fragmentation has a significant negative impact on institutional quality, while infrastructure development and institutional quality are strong drivers of the volume and quality of FDI. A significant mediating effect of investment quality is revealed. The findings confirm that Georgia should move from a quantitative investment attraction policy to a strategy to improve its quality. The article provides practical recommendations for improving investment policy in the context of confrontational globalization.
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Citation
Proceedings of the VIII National Scientific Conference Held at Samtskhe-Javakheti State University on September 11, 2026, on the Occasion of Georgian Economist’s Day, pp. 101-117