Browsing by Author "Jamagidze, Lela"
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Item The analysis of export and impediments using extended gravity model (the case of Georgia)(UNWE, 2018) Papachashvili, Nino; Jamagidze, Lela; Melitauri, NinoThe 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 study provides the grounds to draw important conclusions on the directions of Georgia’s economic integration and raises issues for further research.Item Characteristics of household borrowing in European countries(Ivane Javakhishvili Tbilisi State University Press, 2019) Jamagidze, LelaHousehold borrowing as an economic policy issue has attracted increasing research interest not only at micro level, but also from the world economy perspective. The present paper gives comparative analysis of debt-related indicators in selected European countries. The analysis covers economic and several socio-cultural characteristics of household debt. The main data source is Luxembourg Wealth Study Dataset. It reveals that global bias towards loans for purchasing main residence is repeated in the sample European counties. However they differ greatly in debt repayment indicators and behavioral characteristics of debt.Item Import of institutions and economic value transformation: the interactions among the economic agents in Georgia(Maastricht School of Management, 2014) Papachashvili, Nino; Jamagidze, LelaThe 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 depend on the one hand, institution imports and on the work of these institutions on the other. The foundation of their effective work will be those value constructs that the society holds. The success of institution implementation depends on pace of the increase in the number of people, who use them. The faster the realization of the need and benefits of the observation of certain “rules of the game”, the faster they will be institutionalized. Institutional adaptation gives the economic agents broader opportunities for their economic activities and they adopt new strategies of behavior related to the changes of the institutional framework. Adaptability to the imported institutions depends on the economic values of the economic agents and the benefits of the implementation of the new institutions. The present study incorporates economic values in the analysis of the economic agent interactions against the background of Europeanization. The authors offer a theoretical approach to pose the problem and evaluate the behavior of economic agents in the context of importing European institutions and values in Georgia. The nature of the interactions among the economic agents significantly defines the smooth functioning of the economic system. The authors emphasize that study of the economic agent behavior (state and businesses) in institution import and economic value transformation context will enable to identify the challenges of the adaptation process.Item Institution importation in Georgia-EU trade relations(Ivane Javakhishvili Tbilisi State University Press, 2019) Jamagidze, LelaThe goal of the present paper is to discuss import of trade related institutions from EU into Georgia. The role of EU as an exporter of its policies and norms out of its external borders and, hence, an important source of changes in the trade environment of Georgia is discussed in Europeanization and EU’s external governance context (studied by Schimmelfennig & Sedelmeier (2006), Lavenex (2004), Borzel (2011), etc).The focus is on trade policy reforms and the instruments applied to facillitate Georgia’s institutional harmonization with EU. The reforms are analyzed since the start of bi-lateral cooperation, from PCAs to the conclusion of the Association Agreement. Exported trade-related institutions are based on general EU principles of democracy, peace and stability and aim at greater market integration with Georgia. EU as an external stimulator of changes on the one hand and costly and difficult steps undertaken by Georgia on the other, determine the progress in reforms. The influence of EU can be twofold: harmonization as a reduction of information asymmetries that opens more trade opportunities and reforms as reasons behind greater investment needs and hence, additional costs for business agents. To assess the progress in trade-related institutional reforms we refer to the indicators of Trade Enabling Index by World Economic Forum which measures the extent to which economies have in place institutions, policies, infrastructures and services facilitating the free flow of goods over borders and to their destination. As a composite indicator, the ETI consists of an aggregation of individual indicators measuring various trade-enabling factors organized into seven pillars. Additionally to evaluate the degree of approximation we discuss institutions related to trade in goods. We take goods market efficiency institutions from World Economic Forum and calculate institutional distances between Georgia and EU countries. Georgia’s ETI score has been gradually improved. In addition to it, distance calculated according to goods market efficiency indicators has fallen between Georgia and the majority of EU countries between 2006 and 2016. Evidently, trade policy reforms in Georgia has been part of broader institutional reforms and the EU has had effect on the instruments and agents of trade policy. As a result differences in the regulatory environment of trade between EU and Georgia have been reduced and trade policy instruments harmonized. Implementation of trade policy reforms is still going on through institution importation. It sometimes involves mutual recognition and adoption of international norms (such as incorporation of WTO articles into DCFTA). Other strategies are adoption of similar norms (as it has taken place in customs procedure reforms), direct transfer of rules and requirements and/or step by step harmonization (as it has taken place in services trade). The role of trade policy making agencies should be not only involvement in fulfilment of DCFTA obligations, but also management of the possible risks that arise during institution importation. They involve mistakes made in a attempt to implement changes in a short period of time and dragging on reforms as a result of interest group activities.Item Institution importation in Georgia-EU trade relations(Ivane Javakhishvili Tbilisi State University Press, 2019) Jamagidze, LelaThe goal of the present paper is to discuss import of trade related institutions from EU into Georgia. The role of EU as an exporter of its policies and norms out of its external borders and, hence, an important source of changes in the trade environment of Georgia is discussed in Europeanization and EU’s external governance context (studied by Schimmelfennig & Sedelmeier (2006), Lavenex (2004), Borzel (2011), etc).The focus is on trade policy reforms and the instruments applied to facillitate Georgia’s institutional harmonization with EU. The reforms are analyzed since the start of bi-lateral cooperation, from PCAs to the conclusion of the Association Agreement. Exported trade-related institutions are based on general EU principles of democracy, peace and stability and aim at greater market integration with Georgia. EU as an external stimulator of changes on the one hand and costly and difficult steps undertaken by Georgia on the other, determine the progress in reforms. The influence of EU can be twofold: harmonization as a reduction of information asymmetries that opens more trade opportunities and reforms as reasons behind greater investment needs and hence, additional costs for business agents. To assess the progress in trade-related institutional reforms we refer to the indicators of Trade Enabling Index by World Economic Forum which measures the extent to which economies have in place institutions, policies, infrastructures and services facilitating the free fl ow of goods over borders and to their destination. As a composite indicator, the ETI consists of an aggregation of individual indicators measuring various trade-enabling factors organized into seven pillars. Additionally to evaluate the degree of approximation we discuss institutions related to trade in goods. We take goods market efficiency institutions from World Economic Forum and calculate institutional distances between Georgia and EU countries. Georgia’s ETI score has been gradually improved. In addition to it, distance calculated according to goods market efficiency indicators has fallen between Georgia and the majority of EU countries between 2006 and 2016. Evidently, trade policy reforms in Georgia has been part of broader institutional reforms and the EU has had effect on the instruments and agents of trade policy. As a result differences in the regulatory environment of trade between EU and Georgia have been reduced and trade policy instruments harmonized. Implementation of trade policy reforms is still going on through institution importation. It sometimes involves mutual recognition and adoption of international norms (such as incorporation of WTO articles into DCFTA). Other strategies are adoption of similar norms (as it has taken place in customs procedure reforms), direct transfer of rules and requirements and/or step by step harmonization (as it has taken place in services trade). The role of trade policy making agecies should be not only involvement in fulfilment of DCFTA obligations, but also management of the possible risks that arise during institution importation. They involve mistakes made in a attempt to implement changes in a short period of time and dragging on reforms as a result of interest group activities.