South Caucasus–People's Republic of China Bilateral Free Trade Agreements: Why It Matters
AbstractRegional integration could be turned into a basic factor for economic growth if combined with a strong economic-development-oriented governmental strategy. The effects of regional integration can be maximized for countries stressing open trade as opposed to creating trade-diverting conditions, which requires drafting different kinds of agreements, particularly free trade agreements (FTAs). The impact of regional integration is significant, especially for small open economies—such as Armenia, Azerbaijan, and Georgia, which together comprise the South Caucasus—entering into an FTA with a large economy like the People’s Republic of China (PRC). At the same time, FTAs have mutual economic and geopolitical benefits for all participant countries. Moreover, taking into consideration the interests of countries like Turkey, Iran, and the Russian Federation in the economic and geopolitical potential of this region, the PRC may have to re-think its role in the South Caucasus. This paper assesses the PRC’s FTA strategy, the potential for regional integration in the South Caucasus, and the likely impacts of an FTA on the economies of Armenia, Azerbaijan, Georgia, and the PRC by using several specific trade indicators and a partial equilibrium modeling approach (SMART Model).
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Bibliographic InfoPaper provided by Asian Development Bank in its series Working Papers on Regional Economic Integration with number 125.
Length: 60 pages
Date of creation: 01 Jan 2014
Date of revision:
Free trade agreements; regionalization; South Caucasian countries; PRC; SMART model analysis;
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
- F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-08 (All new papers)
- NEP-CIS-2014-03-08 (Confederation of Independent States)
- NEP-INT-2014-03-08 (International Trade)
- NEP-TRA-2014-03-08 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey A. Frankel, 1998. "The Regionalization of the World Economy," NBER Books, National Bureau of Economic Research, Inc, number fran98-1.
- Jeffrey A. Frankel, 1998. "Introduction to "Regionalization of the World Economy, The"," NBER Chapters, in: The Regionalization of the World Economy, pages 1-6 National Bureau of Economic Research, Inc.
- Jean-Pierre Chauffour & Jean-Christophe Maur, 2011. "Preferential Trade Agreement Policies for Development : A Handbook," World Bank Publications, The World Bank, number 2329, October.
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