Investment capacity of the country’s economy (the case of Georgia)

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Ivane Javakhishvili Tbilisi State University Press
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.
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Investment; factors of the functioning of the economy; investment capacity; curve of production capabilities; overheating of the economy; corruption; investment policy
Economics and Business, №4, 2021, pp. 58-69