CLUSTER ANALYSIS OF THE LOGISTICS SECTOR: A CASE STUDY OF GEORGIA

Driven by the dynamics of globalization, the logistics sector has emerged as a critical determinant of national competitiveness. Georgia, owing to its strategic geographical positioning, holds significant potential as a regional logistics hub. This study aims to investigate the spatial development of the logistics sector across Georgia’s regions and to assess the country’s logistics competitiveness from a regional perspective. To quantify the degree of regional concentration within the sector, the Location Quotient (LQ) methodology is applied. The research incorporates a review of both theoretical and empirical literature on logistics clustering and sectoral concentration metrics, emphasizing the methodological framework of LQ. Based on the statistical regional classification system, Location Quotient values were calculated for NUTS-2 level regions using employment data from the logistics sector. This enabled a comprehensive analysis of the regional distribution of logistics activities across Georgia’s ten regions, thereby revealing the underlying dynamics of regional concentration within the sector. The empirical findings demonstrate a marked spatial disparity in the distribution of logistics activities across Georgia, with significant clustering in specific regions. These concentrations are primarily attributed to the differential development of infrastructure and transport networks. The results underscore the necessity of tailored regional development policies that both promote logistics sector growth and address spatial imbalances. By elucidating the regional dynamics of logistics agglomeration, this study contributes to the formulation of strategic frameworks aimed at enhancing economic performance through targeted spatial planning.