Methodological Issues of Assessment of the Investment Environment as a Factor of Economic Growth

Abstract

In order to optimize the country's investment relations, it is necessary to introduce a system of correct assessment of investment activities, planning and implementation of such effective measures by the state, which will contribute to the elimination of existing gaps in the investment environment, its improvement and economic growth of the country. A foreign investor invests capital resources only in countries with a stable investment environment, which in turn is characterized by the confidence of the local investor. A healthy investment environment is vital for the economic growth of the country, which has become especially relevant in the light of modern global challenges, therefore, FDI is a form of global business relationship that is an integral part of the stimulating factor of an open market economy. Despite the extensive discussion of the essence of the investment environment and the methodological issues of its assessment in foreign and Georgian scientific literature, it became especially relevant after the Covid-pandemic crisis and then the Russian-Ukraine war conflict. According to the trend established in recent years, the national economic system of the world countries, especially in developing countries, is directed towards the growth of investment flows. This trend has become vital for the rehabilitation and development of the post-Covid economy. For the development and modernization of the economy of Georgia, it is necessary to make the maximum use of the opportunities of direct foreign investments and to create an appropriate environment, which determines the effectiveness of this process. The task of the research is to reveal both theoretical-methodological and pragmatic aspects of the current investment environment in Georgia. Based on the results of the research, the formation of suggestions and recommendations about the role of the investment climate in the country's economic growth. The subject of the research is direct foreign investment on the example of Georgia and its importance for the economic growth of the host country. The object of the research is the investment climate and the role of foreign investments in the process of its improvement. Article in Georgian.