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A Quantitative Assessment of the Proposed China-Georgia Free Trade Agreement

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  • Fuenfzig, Michael

Abstract

This paper discusses the proposed China-Georgia free trade agreement and provides quantitative estimates of its economic effects. The proposed free trade agreement would more than double trade flows between China and Georgia over a time horizon of ten to fifteen years, and would increase Georgian GDP per capita by about 1.5 percent. Chinese exports to Georgia would increase by about 20 to 30 percent, and Chinese GDP per capita would remain virtually unchanged. While these estimates have to be treated with extreme caution, they should serve as a motivation to continue negotiations on the free trade agreement.

Suggested Citation

  • Fuenfzig, Michael, 2016. "A Quantitative Assessment of the Proposed China-Georgia Free Trade Agreement," MPRA Paper 78040, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78040
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    References listed on IDEAS

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    1. Olena Ivus & Aaron Strong, 2007. "Modeling Approaches to the Analysis of Trade Policy: Computable General Equilibrium and Gravity Models," Chapters, in: William A. Kerr & James D. Gaisford (ed.), Handbook on International Trade Policy, chapter 5, Edward Elgar Publishing.
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    Cited by:

    1. Nino Papachashvili & Lela Jamagidze & Nino Melitauri, 2018. "The Analysis of Export Drivers and Impediments Using Extended Gravity Model (The Case of Georgia)," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 1, pages 69-85, March.

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    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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