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- Title
GEORGIA'S FOREIGN TRADE POTENTIAL WITH THE UNITED STATES: A GRAVITY MODEL APPROACH.
- Authors
Lang, Irma; Shaburishvili, Shota; Sikharulidze, Davit
- Abstract
The United States became an important strategic partner shortly after restoring Georgia's independence. On June 20, 2007, a trade and investment framework agreement was signed between the U.S. and Georgia. This agreement was to expand trade in goods and services between the two countries and improve Georgia's investment environment. Although Georgia does not yet have a free trade agreement (FTA) with the U.S., this research assesses the trade potential between Georgia and the U.S. through a gravity model using panel data for 2000-2021. The bilateral trade gravity model was evaluated by EGLS, two-stage EGLS, and GMM techniques, which includes the following variables: GDP, population, distance, and trade openness between Georgia and partner countries. In addition, dummy variables such as religion, common border, and trade agreement also play a role. The study results also reveal that Georgia's foreign trade potential with the United States is fragile.
- Subjects
GEORGIA; INTERNATIONAL trade; GRAVITY model (Social sciences); BILATERAL trade; FREE trade; SUSTAINABLE investing
- Publication
Journal of Eastern European & Central Asian Research, 2023, Vol 10, Issue 7, p1088
- ISSN
2328-8272
- Publication type
Article
- DOI
10.15549/jeecar.v10i7.1400