The Impact of Social Capital on FDI in Georgia

Natia Aghladze
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Natia Aghladze: Ivane Javakhishvili Tbilisi State UniverstityFaculty of Economics and Business

European Journal of Economics and Business Studies Articles, 2017, vol. 3

Abstract: FDI brings capital, innovation exchanges and new employments and administration aptitude. In numerous nations, FDI inflow is lower than anticipated. In spite of the inclination for more extensive large scale level examinations of the particular social developments inside which financial exercises happen, a considerable measure of national-level investigations of the determinants of outside contributed firms have given careful consideration to the parts played by social capital and its unexpected incentive in influencing remote direct venture inflows. Drawing on the rationale of social capital and institutional hypothesis, this article looks to offer a correlative clarification of FDI by inspecting experimentally the national-level effects of social capital (trust and affiliated action) on FDI and the directing part of administrative quality in its connections. FDI is the essential part for an open and fruitful global monetary framework and a noteworthy instrument for improvement. In this condition, the paper looks at the advantages of FDI as a key segment for fruitful and feasible financial development and as a piece of a strategy to social change. The point is to feature the most vital channels through which FDI makes a huge and uncommon effect on the monetary advancement of the host nations.

Keywords: FDI; Social capital; Social trust; Host country; Location factor (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:eur:ejesjr:154

DOI: 10.26417/ejes.v9i1.p17-24

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