Capital Market Development in Georgia and Regional Integration: Understanding Policy Strategies

Abstract

The aim of the research paper is to describe the transformative regulatory and supervisory reforms implemented over the past decades, which have been instrumental in fostering the sustainable growth of the capital market in Georgia.  Examining the recent years, the paper scrutinizes the dynamic trajectory of Georgia's capital market, delineating the opportunities and challenges encountered along this journey, and charting future prospects. This paper presents a narrative literature review with analysis of the selected academic and policy literature. It analyzes the development of corporate and government securities markets that represent the Georgian capital market substantially. The statistical and qualitative evidence suggests that the development of the debt securities market is of crucial importance. Most importantly, the trends confirm that special attention should be paid by policy makers to the geopolitical role of the Georgian capital market and to its active integration within regional financial markets.