The Role of the „Middle Corridor“ Global Project in the Economic Development of Georgia

Abstract

Georgia’s geopolitical location determines the prospects for the country's economic development. In this context, it is imperative that the international "Middle Corridor" project be transformed into one of the key drivers of Georgia's economic development. As a result of global geoeconomic transformation, the Trans-Caspian International Transport Route has emerged as a major alternative to the "Northern Corridor."

This paper analyzes the challenges and strategic opportunities facing the Georgian economy through the country's involvement in this large-scale international project. Although the project offers Georgia a unique opportunity to attain the status of a regional logistics hub and attract foreign direct investment, this process unfolds against a backdrop of significant structural and institutional barriers.

The research subject of this paper encompasses crucial challenges such as geopolitical risks, infrastructural constraints, coordination and digital integration, economic inclusivity, and others. It is essential to examine how Georgia's transit function can be converted into sustainable economic growth. To achieve this, the country must not remain merely a "transit corridor," but must develop local high-value-added manufacturing and logistics services.

In the concluding section, concrete recommendations are formulated regarding the optimization of state policy, public-private partnership, and synchronized collaboration with international partners—all of which are required to maximize Georgia's economic benefits within the "Middle Corridor." The presented simulation mathematical model enables the forecasting of Georgia's economic growth within the framework of the "Middle Corridor" project