This paper analyses the impact of hydropower on Georgia’s GPD. The research process is divided into two parts – secondary sources analysis, followed by a regression formula representing the electricity sector’s effect on economic indicators. As a result, we have developed a tailored framework customized for Georgia, leveraging country-specific, relevant data. The study showed that there is a positive correlation between the increased energy consumption (Energy Supply) and GDP growth. Specifically, a 1% boost in energy consumption results in a 0.15% GDP rise. Georgia has a significant resource of hydropower. The findings provide a solid basis for crafting policies and strategic decisions regarding the economic processes linked to the analyzed variables.
Tvauri et al. (Wed,) studied this question.