Challenges in Improving Investment Potential in the Municipalities of Georgia

In recent years, global developments have shown that the biggest determinant of sustainable development is the growth of the real sector, which, in turn, is impossible without the activation of investment processes. International experience shows that the active participation of the population in the investment process contributes to the economy growth of the city (municipality). Therefore, it is necessary to form and use the effective tools that will help to increase the involvement of the population in the development of the economy of the municipality by attracting the population’s savings. The paper presents the results of the regression analysis of the added value produced and the investments in fixed assets according to the municipalities of Georgia (64 municipalities in total). The analysis was undertaken according to several scenarios: with all municipalities, without the capital city of Tbilisi and Batumi. The regression analysis confirmed a high correlation between the added value and investments in the municipalities of Georgia. The obtained result indicates that each unit of investment increase in a given year can increase the added value produced in the municipality by 4 unit. © 2025 Elsevier B.V., All rights reserved.