Perspectives and opportunities of Georgian financial market integration into EU
2020
Tsintsadze, A., Batumi Shota Rustaveli State Univ. (Georgia) | Vashakmadze, I., Batumi Shota Rustaveli State Univ. (Georgia) | Tavadze, I., Batumi Shota Rustaveli State Univ. (Georgia) | Meloyan-Phutkaradze, L., Batumi Shota Rustaveli State Univ. (Georgia)
Full integration of the financial market with Europe is a necessary requirement of a market economy. The circulation of financial resources between different countries of the world creates opportunities for the growth of the economy of each of them, as the share of foreign investments both inside the country and abroad increases. The ability of developing countries to integrate with Europe is limited because of their economic situation. The aim of this paper is to identify the obstacles and opportunities that hinder or facilitate the integration process. One of the reasons for the inadequate extent of liberalization of financial flow is the inadequate development of the financial market. The main financial institutions that are promoting the flow of funds in the financial market under the guidance of the European Association Agreement directives are primarily development oriented, although the socio-economic situation impedes the implementation of certain directives or the proper success is not achieved. The inflow of foreign investment into the Georgian economy is not problematic, although only one-way movement of financial resources cannot ensure full integration. Especially the initial phase of European directives involves the movement of finances through the opening of branches in European countries. In the article, the economic growth achieved before and after the European Association Agreement in the development of the financial markets will be an indicator of the opportunities and prospects for European integration. The empirical analysis method is used for the evaluation, the role of banking and insurance institutions in the development of the stock market has been studied, problems have been identified and recommendations have been formulated to improve the financial market.
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