Summary 

This article substantiates the importance of effective management of investment activities for the political and economic stabilization of Georgia, analyzes views of various scientists about the principles and paradigms of investment activity. Also, the dynamic of foreign direct investment in Georgia for 2017-2019 is explored. It is concluded that the development of the private sector is significantly limited by the lack of investment, accordingly measures to be taken by the government for the development of small and medium-sized businesses within the framework of the investment policy are proposed. The paper identifies the factors influencing the implementation of investment processes, evaluates the main determinants of investment - interest rate and sales volume. It is proved that the determinants effect on investment volume both separately, as well as complex. It has been established that an increase in the volume of output stimulates the volume of investment.

The paper draws conclusions about the factors influencing investment processes, outlines ways to effectively manage investments.

Keywords: Investment Process, Foreign Direct Investment, Economic Growth, Investment Environment.