Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109616
Authors: 
Hovhanesian, Hasmik
Manasyan, Heghine
Year of Publication: 
2014
Series/Report no.: 
ADB Working Paper Series on Regional Economic Integration 125
Abstract: 
Regional 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).
Subjects: 
Free trade agreements
regionalization
South Caucasian countries
PRC
SMART model analysis
JEL: 
F13
F15
F17
F43
F53
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/igo
Document Type: 
Working Paper

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