FDI flows provide capital, as well as technology and know-how and represent one of the most effec... more FDI flows provide capital, as well as technology and know-how and represent one of the most effective ways for integration with the global economy. Therefore the development of the appropriate policy measures to attract FDI is one of the important policy making areas in Georgia. The article analyzes Georgia’s FDI policy instruments using the conceptual framework of the UNCTAD, which distinguishes three generations of FDI policy instruments. During the last decades Georgia has made substantial reforms in the regulating institutions of the economy, including in the field of investments. At the present stage the most important objective is to carry out an effective strategy for economic and regulatory approximation with the EU. Implementation of the first generation of investment policy instruments in Georgia involved liberalization of trade and creation of the legislative basis for the open and non-discriminatory regime for foreign investors. Establishment of the Georgian National Inv...
The present work discusses the decisions of economic agents and the interactions among them in Ge... more The present work discusses the decisions of economic agents and the interactions among them in Georgia‟s transformation economy from new institutional point of view. European integration is an irreversible economic orientation of Georgia, which influences both formal and informal institution formation. The authors argue that the analysis of the economic value formation aspects of the ongoing process of Europeanization is important for the understanding of the stage by stage outcomes of this process. The Association Agreement between Georgia and the EU represents Georgia‟s Europeanization action plan. The Agreement stresses that European values represent the cornerstone of economic integration and political association. The implementation of the Association Agreement will bring concrete benefits in terms of increased opportunities for small and medium sized businesses, access to the European education, strengthened rule of law, etc. The authors argue that the success of modernization...
The goal of the present paper is to examine the drivers and impediments of Georgia’s exports to 3... more The goal of the present paper is to examine the drivers and impediments of Georgia’s exports to 33 Free Trade and Preferential partner countries during the 2000-2015 period and make trade policy recommendations. The analysis relies on the extended gravity model of trade in log-log form. The present analysis of the export determinants of Georgia, which is a small economy with high degree of trade openness, enriches the available international practice of application and testing the gravity model. The research results can be applied in comparative research studies. The results show that Georgia’s exports to Free Trade and Preferential partner countries is strongly influenced by partners’ size (GDP and population) and geographic distance. Cultural and institutional distances as well as colonial ties are less significant determinants. There are variables other than the ones included in the model and they have stronger effects on Georgia’s exports so they need to be explored further. The...
Based on the analysis of trade and policy reforms undertaken towards greater facilitation of trad... more Based on the analysis of trade and policy reforms undertaken towards greater facilitation of trade and harmonization of rules, the paper evaluates the "thickness" of borders at the current stage of Georgia-EU cooperation. The study is focused on the trade component of the formal cooperation agreements between Georgia and EU. Trade flows as well as policy reforms are analyzed in order to evaluate how the significance of borders has changed. It reviews the steps taken by both parties to overcome national borders and create larger economic space for trade
B/orders are multidimensional phenomena studied b y various social disciplines. In the present pa... more B/orders are multidimensional phenomena studied b y various social disciplines. In the present paper b/orders are dealt with in cross-countr y economic cooperation context. Post-Soviet space is one of the most interesting cases for b/order studies, because of the complex re-territorialization processes that have taken place there since 1990s along with deep economic and political transformations. In Georgia b/ordering processes are affected b y countr y -specific features (such as small size, geopolitical characteristics) and general region-wide forces (its strong European integration aspirations, Russia’s dominant role in the region). The anal ysis of the formal institutional basis for Georgia’s cooperation with these important economic partners and the dynamics of economic activities (cross-border flows of goods and production factors) enable to assess the role of b/orders, recent developments in b/ordering and their economic consequences. The research shows that in Georgia b/orde...
The role of transnational corporations in the globalisation process Grazia Ietto-Gillies 1 1980 a... more The role of transnational corporations in the globalisation process Grazia Ietto-Gillies 1 1980 and 2007… As a result, the multiple of the stock of financial assets to world output jumped from 1.2 to 4.4…'. l Social and organisational changes. The organisation of production and business in general has undergone considerable changes made possible and indeed necessary by the new technologies. l Transnational corporations. The major changes are related to the organisation of production across countries due to the activities of TNCs, on which more in the rest of this chapter. l Technological basis of globalisation. None of the above changes would have been possible on the scale in which we are witnessing them without the introduction and rapid spread of the information and communication technologies (ICTs). The ICTs affect every aspect of the globalisation process from the movement of people, products and resources, to the organisation of production. Considerable improvements have also occurred in the technology and costs of transportation. As regards the quantitative aspects of the globalisation process, the following issues are relevant. l There has been an increase in the number of mechanisms of interconnectedness across borders: from the traditional trade flows to foreign investment (direct and portfolio) and related incomes, to various types of collaborative business ventures.
The present paper discusses several new trends in the global trade such as digitalization of trad... more The present paper discusses several new trends in the global trade such as digitalization of trade, regional trade agreements and the emergence of new global players. Based on theoretical research and the study of the available secondary statistical data it analyzes how trade policy can address these changes under the existing world trading system. Trade rules underlying the traditional trading system are still applicable under increasing digital trade and enhanced bilateral and regional trade integration. However, WTO Agreement has nothing to do with those barriers of trade that go beyond traditional trade measures and are very acute for the developing countries. They involve access to the Internet and other telecommunication infrastructure, weak formal institutions and legal protection, lack of awareness about the potential benefits and opportunities in digital trade and lack of IT literacy. In order to overcome these barriers developing countries should incorporate trade policy a...
... Proofread by American Journal Experts Association Technical assistants: SophioSichinava, MSc ... more ... Proofread by American Journal Experts Association Technical assistants: SophioSichinava, MSc Nana Maisuradze, MSc The present study was conducted with the support of the Academic Swiss Caucasus Net (ASCN). ASCN ...
FDI flows provide capital, as well as technology and know-how and represent one of the most effec... more FDI flows provide capital, as well as technology and know-how and represent one of the most effective ways for integration with the global economy. Therefore the development of the appropriate policy measures to attract FDI is one of the important policy making areas in Georgia. The article analyzes Georgia’s FDI policy instruments using the conceptual framework of the UNCTAD, which distinguishes three generations of FDI policy instruments. During the last decades Georgia has made substantial reforms in the regulating institutions of the economy, including in the field of investments. At the present stage the most important objective is to carry out an effective strategy for economic and regulatory approximation with the EU. Implementation of the first generation of investment policy instruments in Georgia involved liberalization of trade and creation of the legislative basis for the open and non-discriminatory regime for foreign investors. Establishment of the Georgian National Inv...
The present work discusses the decisions of economic agents and the interactions among them in Ge... more The present work discusses the decisions of economic agents and the interactions among them in Georgia‟s transformation economy from new institutional point of view. European integration is an irreversible economic orientation of Georgia, which influences both formal and informal institution formation. The authors argue that the analysis of the economic value formation aspects of the ongoing process of Europeanization is important for the understanding of the stage by stage outcomes of this process. The Association Agreement between Georgia and the EU represents Georgia‟s Europeanization action plan. The Agreement stresses that European values represent the cornerstone of economic integration and political association. The implementation of the Association Agreement will bring concrete benefits in terms of increased opportunities for small and medium sized businesses, access to the European education, strengthened rule of law, etc. The authors argue that the success of modernization...
The goal of the present paper is to examine the drivers and impediments of Georgia’s exports to 3... more The goal of the present paper is to examine the drivers and impediments of Georgia’s exports to 33 Free Trade and Preferential partner countries during the 2000-2015 period and make trade policy recommendations. The analysis relies on the extended gravity model of trade in log-log form. The present analysis of the export determinants of Georgia, which is a small economy with high degree of trade openness, enriches the available international practice of application and testing the gravity model. The research results can be applied in comparative research studies. The results show that Georgia’s exports to Free Trade and Preferential partner countries is strongly influenced by partners’ size (GDP and population) and geographic distance. Cultural and institutional distances as well as colonial ties are less significant determinants. There are variables other than the ones included in the model and they have stronger effects on Georgia’s exports so they need to be explored further. The...
Based on the analysis of trade and policy reforms undertaken towards greater facilitation of trad... more Based on the analysis of trade and policy reforms undertaken towards greater facilitation of trade and harmonization of rules, the paper evaluates the "thickness" of borders at the current stage of Georgia-EU cooperation. The study is focused on the trade component of the formal cooperation agreements between Georgia and EU. Trade flows as well as policy reforms are analyzed in order to evaluate how the significance of borders has changed. It reviews the steps taken by both parties to overcome national borders and create larger economic space for trade
B/orders are multidimensional phenomena studied b y various social disciplines. In the present pa... more B/orders are multidimensional phenomena studied b y various social disciplines. In the present paper b/orders are dealt with in cross-countr y economic cooperation context. Post-Soviet space is one of the most interesting cases for b/order studies, because of the complex re-territorialization processes that have taken place there since 1990s along with deep economic and political transformations. In Georgia b/ordering processes are affected b y countr y -specific features (such as small size, geopolitical characteristics) and general region-wide forces (its strong European integration aspirations, Russia’s dominant role in the region). The anal ysis of the formal institutional basis for Georgia’s cooperation with these important economic partners and the dynamics of economic activities (cross-border flows of goods and production factors) enable to assess the role of b/orders, recent developments in b/ordering and their economic consequences. The research shows that in Georgia b/orde...
The role of transnational corporations in the globalisation process Grazia Ietto-Gillies 1 1980 a... more The role of transnational corporations in the globalisation process Grazia Ietto-Gillies 1 1980 and 2007… As a result, the multiple of the stock of financial assets to world output jumped from 1.2 to 4.4…'. l Social and organisational changes. The organisation of production and business in general has undergone considerable changes made possible and indeed necessary by the new technologies. l Transnational corporations. The major changes are related to the organisation of production across countries due to the activities of TNCs, on which more in the rest of this chapter. l Technological basis of globalisation. None of the above changes would have been possible on the scale in which we are witnessing them without the introduction and rapid spread of the information and communication technologies (ICTs). The ICTs affect every aspect of the globalisation process from the movement of people, products and resources, to the organisation of production. Considerable improvements have also occurred in the technology and costs of transportation. As regards the quantitative aspects of the globalisation process, the following issues are relevant. l There has been an increase in the number of mechanisms of interconnectedness across borders: from the traditional trade flows to foreign investment (direct and portfolio) and related incomes, to various types of collaborative business ventures.
The present paper discusses several new trends in the global trade such as digitalization of trad... more The present paper discusses several new trends in the global trade such as digitalization of trade, regional trade agreements and the emergence of new global players. Based on theoretical research and the study of the available secondary statistical data it analyzes how trade policy can address these changes under the existing world trading system. Trade rules underlying the traditional trading system are still applicable under increasing digital trade and enhanced bilateral and regional trade integration. However, WTO Agreement has nothing to do with those barriers of trade that go beyond traditional trade measures and are very acute for the developing countries. They involve access to the Internet and other telecommunication infrastructure, weak formal institutions and legal protection, lack of awareness about the potential benefits and opportunities in digital trade and lack of IT literacy. In order to overcome these barriers developing countries should incorporate trade policy a...
... Proofread by American Journal Experts Association Technical assistants: SophioSichinava, MSc ... more ... Proofread by American Journal Experts Association Technical assistants: SophioSichinava, MSc Nana Maisuradze, MSc The present study was conducted with the support of the Academic Swiss Caucasus Net (ASCN). ASCN ...
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