IDEAS home Printed from https://ideas.repec.org/a/wly/padxxx/v44y2024i3p150-156.html
   My bibliography  Save this article

Policy approaches to stimulate exports: The case of Georgia

Author

Listed:
  • Andreas Klasen
  • Tengiz Lomitashvili
  • Kristian Rosbach
  • Kiyoshi Taniguchi

Abstract

This report examines exporters’ challenges and possible solutions for public intervention to promote foreign trade. Based on fieldwork conducted in Georgia, we explore which policy approaches can help to stimulate Georgian exports further. Our outcomes show that exporters face substantial barriers such as navigating complex trade regulations, lack of knowledge about target markets, trade finance gaps, as well as new export promotion programs (EPPs) in competitor countries. Other upper‐middle‐income countries can learn from our results that exporters can significantly benefit from a comprehensive export promotion strategy combined with an ecosystem‐based “team” approach. EPPs related to awareness and capacity building in Georgia should be part of this strategy, focusing on challenges such as a lack of knowledge about trade practices and international business skills. Other EPPs must help to mitigate related market failures, as information gathering is costly, and firms have no incentive to share this information with competitors. Furthermore, targeted marketing support and customer matchmaking can answer Georgian exporters’ challenges, such as lack of market access and low sector visibility. Our results also show that public intervention through financial support and risk mitigation is essential for firms with an international orientation. The high‐quality, rich outcomes provide significant value for other upper‐middle‐income countries by exploring the example of Georgia’s contemporary circumstances in an in‐depth manner based on extensive interviews and document analysis. Limitations include that our work primarily relies on qualitative data and further research could involve a quantitative study with a diverse range of sectors.

Suggested Citation

  • Andreas Klasen & Tengiz Lomitashvili & Kristian Rosbach & Kiyoshi Taniguchi, 2024. "Policy approaches to stimulate exports: The case of Georgia," Public Administration & Development, Blackwell Publishing, vol. 44(3), pages 150-156, August.
    • Handle: RePEc:wly:padxxx:v:44:y:2024:i:3:p:150-156
    DOI: 10.1002/pad.2045
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/pad.2045
    Download Restriction: no
    File URL: https://libkey.io/10.1002/pad.2045?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alexis Catanzaro & Christine Teyssier, 2021. "Export promotion programs, export capabilities, and risk management practices of internationalized SMEs," Small Business Economics, Springer, vol. 57(3), pages 1479-1503, October.
    2. Wilkinson, I. F. & Mattsson, L-G & Easton, G., 2000. "International competitiveness and trade promotion policy from a network perspective," Journal of World Business, Elsevier, vol. 35(3), pages 275-299.
    3. Mania, Elodie & Rieber, Arsène, 2019. "Product export diversification and sustainable economic growth in developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 138-151.
    4. Elodie Mania & Arsène Rieber, 2019. "Product export diversification and sustainable economic growth in developing countries," Post-Print hal-02297128, HAL.
    5. Neslihan Turguttopbas, 2013. "Export Credit Agency Activities in Developing Countries," The International Trade Journal, Taylor & Francis Journals, vol. 27(3), pages 281-319, August.
    6. Haifeng Qian & Zoltan J. Acs, 2023. "Entrepreneurial Ecosystems and Economic Development Policy," Economic Development Quarterly, , vol. 37(1), pages 96-102, February.
    7. Lydia Nyankom Takyi & Vannie Naidoo & Courage Simon Kofi Dogbe, 2022. "Government support, strategic alliance and internationalization: Evidence from indigenous Ghanaian exporters," Journal of International Entrepreneurship, Springer, vol. 20(4), pages 619-638, December.
    8. Freixanet, Joan, 2022. "Export promotion programs: A system-based systematic review and agenda for future research," Journal of World Business, Elsevier, vol. 57(4).
    9. Abuselidze, George, 2019. "European Integration of Georgia and Financial-Economic Condition: Achievements and Challenges," MPRA Paper 97343, University Library of Munich, Germany.
    10. Elodie Mania & Arsène Rieber, 2019. "Product export diversification and sustainable economic growth in developing countries," Post-Print hal-03284696, HAL.
    11. Elodie Mania & Arsène Rieber, 2019. "Product export diversification and sustainable economic growth in developing countries," Post-Print hal-02444074, HAL.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gozgor, Giray & Paramati, Sudharshan Reddy, 2022. "Does energy diversification cause an economic slowdown? Evidence from a newly constructed energy diversification index," Energy Economics, Elsevier, vol. 109(C).
    2. Sèna Kimm Gnangnon, 2022. "Financial development and tax revenue in developing countries: investigating the international trade channel," SN Business & Economics, Springer, vol. 2(1), pages 1-26, January.
    3. Lee, Chien-Chiang & Yuan, Zihao & Ho, Shan-Ju, 2022. "How does export diversification affect income inequality? International evidence," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 410-421.
    4. Swathi. M & P. Sridharan, 2022. "Determinants of Export Diversification: Evidence from Fractional Logit Estimation Model," Foreign Trade Review, , vol. 57(2), pages 160-177, May.
    5. Sèna Kimm Gnangnon, 2022. "Aid for Trade, export product diversification, and foreign direct investment," Review of Development Economics, Wiley Blackwell, vol. 26(1), pages 534-561, February.
    6. Nihal Ahmed & Adnan Ahmed Sheikh & Farhan Mahboob & Muhammad Sibt e Ali & Elżbieta Jasińska & Michał Jasiński & Zbigniew Leonowicz & Alessandro Burgio, 2022. "Energy Diversification: A Friend or Foe to Economic Growth in Nordic Countries? A Novel Energy Diversification Approach," Energies, MDPI, vol. 15(15), pages 1-15, July.
    7. Matallah, Siham, 2022. "Rampant corruption: The dilemma facing economic diversification in oil-abundant MENA countries," Resources Policy, Elsevier, vol. 75(C).
    8. Cieślik, Andrzej & Parteka, Aleksandra, 2021. "Relative Productivity, Country Size and Export Diversification," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 28-44.
    9. Kacou, Kacou Yves Thierry & Kassouri, Yacouba & Evrard, Talnan Hongwopena & Altuntaş, Mehmet, 2022. "Trade openness, export structure, and labor productivity in developing countries: Evidence from panel VAR approach," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 194-205.
    10. Maxwell Chukwudi Udeagha & Edwin Muchapondwa, 2023. "Achieving regional sustainability and carbon neutrality target in Brazil, Russia, India, China, and South Africa economies: Understanding the importance of fiscal decentralization, export diversificat," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(4), pages 2620-2635, August.
    11. Gnangnon, Sèna Kimm, 2020. "Aid for Trade flows and Poverty Reduction in Recipient-Countries," EconStor Preprints 213807, ZBW - Leibniz Information Centre for Economics.
    12. Mousavi, Mohammad Mahdi & Gozgor, Giray & Acheampong, Albert, 2024. "Do oil market shocks affect financial distress? Evidence from firm-level global data," Journal of Commodity Markets, Elsevier, vol. 36(C).
    13. Tehreem Fatima & Grzegorz Mentel & Buhari Doğan & Zeeshan Hashim & Umer Shahzad, 2022. "Investigating the role of export product diversification for renewable, and non-renewable energy consumption in GCC (gulf cooperation council) countries: does the Kuznets hypothesis exist?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(6), pages 8397-8417, June.
    14. Siemen Berkum, 2021. "How trade can drive inclusive and sustainable food system outcomes in food deficit low-income countries," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1541-1554, December.
    15. Shahzad, Umer & Lv, Yulan & Doğan, Buhari & Xia, Wanjun, 2021. "Unveiling the heterogeneous impacts of export product diversification on renewable energy consumption: New evidence from G-7 and E-7 countries," Renewable Energy, Elsevier, vol. 164(C), pages 1457-1470.
    16. Jiang, Shaohua & Mentel, Grzegorz & Shahzadi, Irum & Ben Jebli, Mehdi & Iqbal, Najaf, 2022. "Renewable energy, trade diversification and environmental footprints: Evidence for Asia-Pacific Economic Cooperation (APEC)," Renewable Energy, Elsevier, vol. 187(C), pages 874-886.
    17. Gnangnon, Sèna Kimm, 2019. "Financial Development and Tax Revenue in Developing Countries: Investigating the International Trade and Economic Growth Channels," EconStor Preprints 206628, ZBW - Leibniz Information Centre for Economics.
    18. Young Ademola Obafemi, 2022. "Specialization Versus Diversification as Alternative Strategies for Sustainable Growth in Resource-Rich Developing Countries. Case of Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(3), pages 1-47, September.
    19. Sèna Kimm Gnangnon, 2020. "Export product diversification and tax performance quality in developing countries," International Economics and Economic Policy, Springer, vol. 17(4), pages 849-876, October.
    20. Yu Ni & Peilin Du & Mei Rong, 2024. "Does the differentiated blue product structure affect country's blue economy status? Evidence from complex network and spatial econometric analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(4), pages 9397-9420, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:padxxx:v:44:y:2024:i:3:p:150-156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0271-2075 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.