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The Impact of Regional Trade Agreements on Georgia's Exporters : A Firm-Level Analysis

Author

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  • Neri,Matteo
  • Orefice,Gianluca
  • Ruta,Michele

Abstract

This paper assesses the trade impact of regional trade agreements signed by Georgia. Using information from the World Bank’s Deep Trade Agreements database and the Exporters’ Dynamics Database for Georgia for 2000–20, the paper tests the effect of regional trade agreements on the performance of Georgian exporters. The results show that the depth of regional trade agreements has a positive effect on the exports of firms, and the more so if trade agreements include legally enforceable provisions. Interestingly, the effect of regional trade agreements is not homogeneous across exporters with different characteristics. While large exporters and firms participating in global value chains benefit from deep trade agreements, small firms are negatively affected. Deep trade agreements have a positive effect on the probability of entry into the export market for large firms and firms in global value chains.

Suggested Citation

  • Neri,Matteo & Orefice,Gianluca & Ruta,Michele, 2021. "The Impact of Regional Trade Agreements on Georgia's Exporters : A Firm-Level Analysis," Policy Research Working Paper Series 9768, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9768
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    References listed on IDEAS

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    1. Henrik Horn & Petros C. Mavroidis & André Sapir, 2010. "Beyond the WTO? An Anatomy of EU and US Preferential Trade Agreements," The World Economy, Wiley Blackwell, vol. 33(11), pages 1565-1588, November.
    2. Aaditya Mattoo & Alen Mulabdic & Michele Ruta, 2022. "Trade creation and trade diversion in deep agreements," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(3), pages 1598-1637, August.
    3. Fernandes, Ana M. & Freund, Caroline & Pierola, Martha Denisse, 2016. "Exporter behavior, country size and stage of development: Evidence from the exporter dynamics database," Journal of Development Economics, Elsevier, vol. 119(C), pages 121-137.
    4. Hofmann,Claudia & Osnago,Alberto & Ruta,Michele, 2017. "Horizontal depth : a new database on the content of preferential trade agreements," Policy Research Working Paper Series 7981, The World Bank.
    Full references (including those not matched with items on IDEAS)

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