Abstract:
Today, direct foreign investments are important for the economic development of Georgia. In the
conditions of globalization, many countries are trying to create an appropriate investment environment and be
able to attract capital, as it is related to the economic development of the country. We can say that Georgia has
implemented important reforms in the country. Since 2003, 50 reforms have been carried out. The reforms are
related to stimulation of foreign direct investments and their protection. Georgia has the potential to attract
foreign direct investments and in this way will contribute to the stability of the country's national currency. It
should be noted that Georgia occupies an important place in the world rankings. As a result of the data
analysis, we can conclude that Foreign Direct Investments significantly affects the stability of the country's
economy. In the dynamics of the years, the hindering factors affecting the inflow of investments in Georgia are
clearly visible. Georgia is attractive for EU countries. It is from these countries that the inflow of investments is
recorded. Also, the following factors contribute to the attraction of foreign direct investments: stable political
and economic environment, flexible and efficient tax system, free trade regime, geographical location and
others. It is significant that, if not for the global pandemic, Georgia would have improved the volume of
investments in the following years as well, as the dynamics of foreign direct investments allows. It is important
to mention the Association Agreement, which opened a new way for Georgia to attract capital. The
geographical situation of Georgia is an important advantage. It is a specific and distinguishing feature of the
country.
In order to get more benefits from foreign direct investments, it is necessary to determine the directions
that can have a greater impact on the health of the country's economy. It is advisable to finance research for
this. Because investment in research and development allows for more knowledge.
Description:
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