Project intends to create a simple to understand index, which will enable user to monitor Georgian economic dependency on country groups based on their quality of democracy

Economic Dependency can be understood as an economic integration with the selected country groups based on exchange of goods and flow of the capital

Methodology for the Economic Dependency Index has been developed with the following criteria in mind:

∙ Reliability and simplicity
∙ Accessibility of data
∙ Flexibility for future adjustment
∙ Limitation of subjective assumptions
∙ Comparability to other state

/Economic Dependency Index

Economic Dependency Index is an aggregated indicator, based on five components, demonstrating the degree of economic integration with the four groups of countries, differentiated based on their quality of Democracy.

Following economic indicators are used for index: Export of Goods, Import of Goods, Foreign Direct Investment, Remittances and International Debt.

Countries are grouped as “Authoritarian”, Hybrid Regime”, “Flawed Democracy”, and “Full Democracy” based on the “democracy index” by Economics Intelligence Unit

Index serves as the monitor for Georgia’s economic security. Innovative methodology for index has been developed by Economic Policy Research Center (EPRC) with the support of USAID Economic Governance Program