Features of FDI flows in the regions of Georgia.

Abstract

Relevance of the topic. Disproportions in the socio-economic development of Georgia's regions are one of Georgia's main challenges. One of the main "culprits" of which is the uneven distribution of foreign direct investment (FDI). Although there have been many studies on FDI in Georgia, there are few studies at the regional level. At this level, this issue has yet to become the subject of a thorough scientific study. In addition, it is necessary to consider that a significant part of the population of the regions of Georgia is unemployed and lives in poverty (which is determined by the volume and vectors of FDI). One of the ways to solve the problem is the inflow of foreign capital. Methodology and methods used. What is the reason for the regional disproportion in the distribution of FDI? By what principle do the regions of Georgia attract him? What is the correlation between the level of urbanization and the amount of FDI? These are questions around which there is a lot of discussion or scientific disputes within the regional sciences.  Why FDI? Its choice as an empirical case at the regional level is due to several reasons: 1. significant disproportions in the distribution of FDI at the regional level in Georgia; 2. The current situation with the geographic distribution of FDI in Georgia significantly changes the picture of the territorial distribution of the welfare level of the population. The theoretical aim of the study is to determine the impact of public geographic factors on the distribution of FDI in the interior regions of Georgia. For the analysis, such indicators were selected as the regional structure of FDI, Remoteness from the center of the agglomeration, GDP, and unemployment. The study is based on spatio-temporal approaches. The main methods are comparative analysis, and the method of cases. For the quantitative assessment of the statistical study of the relationship between events/processes Spearman rank correlation method was used. In the process of data collection and analysis, specific methodological techniques are used, such as primary (content analysis of official documents related to regional FDI studies) and analysis of secondary sources (scientific literature and scientific electronic databases on the topic under study). Statistical information is based on the data of the National Statistical Service of Georgia. The chronological framework of the research includes 12 regions of Georgia (including Tbilisi) and the chronological framework - 2010-2020. Basic Case. According to empirical studies, the uneven regional flows of FDI negatively affect the country's economic growth and dynamics. A peculiar trend has formed in Georgian regional science that incoming investment flows are fragmented and, from the point of view of export promotion, could be more stable at the regional level. For many years, the main flows of FDI volume have been directed toward Tbilisi and Adjara (the total figure for 2017 is 87.8%) when a negative balance of FDI was recorded in several regions at different times (for example, Kakheti, Shida Kartli and Mtskheta-Mtianeti, Samegrelo-Zemo Svaneti). Results and Findings. In the regions of Georgia, problems in the direction of FDI flows manifest differently in space and time. In the territorial distribution of FDI, there is a trend of agglomeration effect (the main discrepancy between Tbilisi and other regions of Georgia. Tbilisi creates 50.1% of GDP and attracts 77.6% of the volume of FDI). From a practical point of view, FDI brings many positives at the level of the regions of Georgia. However, to obtain the maximum effect, it is necessary to develop a regional investment policy, considering the country's long-term interests.