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The Impact of FDI on Economic Development: The Case of Georgia

Author

Listed:
  • Charaia Vakhtang

    (Faculty of Economics and Business, Tbilisi State University, Chavchavadze Ave. 1, Tbilisi 0178, Georgia)

  • Chochia Archil

    (Department of Law, Tallinn University of Technology, Akadeemia tee 3, Tallinn 12618, Estonia)

  • Lashkhi Mariam

    (Faculty of Business Administration, Georgian Aviation University, Ketevan Tsamebuli Ave. 16, Tbilisi 0103, Georgia)

Abstract

From the strategic point of view, not all foreign direct investments (FDI) are always positively benefiting the host economy, i.e. not all multinational enterprises (MnEs) are promoting local host economies. Even more, not all FDIs are equally beneficial to different sectors within the same economy. The fact is that fdi can impact different sectors in various ways, and the impact is not only based on the amount of fdi itself but on MnEs’ motivations and the peculiarities of the host economy, which can differ from country to county. in other words, only fdi numbers aggregated per year are not really giving a comprehensive picture of the situation and in many cases lead to incorrect strategic decisions, as it has happened in many countries, including Georgia.

Suggested Citation

  • Charaia Vakhtang & Chochia Archil & Lashkhi Mariam, 2020. "The Impact of FDI on Economic Development: The Case of Georgia," TalTech Journal of European Studies, Sciendo, vol. 10(2), pages 96-116, September.
    • Handle: RePEc:vrs:bjeust:v:10:y:2020:i:2:p:96-116:n:3
    DOI: 10.1515/bjes-2020-0017
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