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The Influence of Foreign Direct Investments on the Economic Development of the Country


  • Lela Bakhtadze

    (Department of International Economics and Economic Teaching History, Ivane Javakhishvili Tbilisi State University)

  • Nanuli Okruashvili

    (Department of Marketing, Ivane Javakhishvili Tbilisi State University)


In modern epoch the process of financial globalization requires the assessment of the economic consequences of regional integration and free movement of capital in the countries. The reason for this is the fact that the stable economic growth of the country directly depends on inflows and outflows of the capital. Georgia is a small transformational country with open economy heavily depending on the existing economic conditions of the region. The article has studied foreign demands and direct impacts of foreign investment on the economic development of the country. The goal of the research is to determine the priority areas and fields for direct foreign investment in Georgia, to reveal positive and negative influences attracting direct foreign investments as well as develop recommendations stimulating direct foreign investments in the country.In the article comprehensively studied the reasons for the decrease in investment.The authors of the research have compiled and systematized information about the investment market of Georgia, revealed theoretical and practical, conceptual and organizational problems, existing in. One of the reasons for the reduction of direct foreign investments by authors is the low level of development and use of investment marketing, which determines the country's low level of competitiveness in the global investment market. Accordingly, Based on systematic analysis of the global investment market, have been worked out specific methodological recommendations, that are related to developing effective marketing strategies for increasing the improvement of the investment climate and investment image of Georgia and its competitiveness on the global investment market.

Suggested Citation

  • Lela Bakhtadze & Nanuli Okruashvili, 2019. "The Influence of Foreign Direct Investments on the Economic Development of the Country," Proceedings of International Academic Conferences 9111473, International Institute of Social and Economic Sciences.
  • Handle: RePEc:sek:iacpro:9111473

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    More about this item


    Foreign Direct Investments; Foreign Demand; Inflow of Investments; Stimulate Investments; Investment Marketing;
    All these keywords.

    JEL classification:

    • F00 - International Economics - - General - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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