Trade and economic relations between Georgia and the Czech Republic: challenges in export and import of agri-food products

Abstract

The article evaluates the importance of trade and economic relations between countries in economic growth. At a time of globalization has been identified the existing problems of the international division of labor for Georgia. Substantiated that the development of trade and economic relations is an important challenge in the condition of a low level of food provision for the population of Georgia. From this perspective, it is relevant to analyse the export-import of agriproducts with those European countries that have similar resource potential, geographic proximity, socio-economic and political characteristics to Georgia, among of which is the Czech Republic. Based on the theories of international trade, in order to assess the trade and economic potential between Georgia and the Czech Republic and to determine trends of development, has been studied main indicators of the above-mentioned countries. Comparative analysis of the data showed that quantitative indexes are similar between these two countries, while the qualitative data in the Czech Republic is higher as compared to Georgia. The paper discusses the agriculture of Georgia as one of the main sources of economic growth, therefore, to increase the resource potential of the sector needs to develop foreign trade and economic relations with the agriproducts. Based on analysis of data on export-import of agriproducts between Georgia and the Czech Republic, has been concluded that the trade balance between the countries is variable and trade and economic relations are at the development stage. The main challenge in agriproduct trade between the countries is a low level of import-export diversification of agriproducts. At the same time, it is substantiated, that the cooperation with the Czech Republic perspective for Georgia not only in trade but also in the sphere of investments and modern technologies. The article argues the need for an optimal ratio of exports and imports in the development of trade and economic relations. Through the empirical studies the current challenges of export and import of agri-food products between Georgia and the Czech Republic have been identified; export-import ratios have been analysed by product type; and the ways to improve trade and economic cooperation between the two countries have been outlined. Promising areas of economic relations and export-import between Georgia and the Czech Republic have been developed.