ON THE POTENTIAL OF EXPANDING GEORGIA’S EXPORTS TO THE EUROPEAN UNION

Abstract

In the article the issue is raised and discussed both from the point of view of the EU countries and most of the export-import commodity groups. The share of export to the European Union in the total export of Georgia is analyzed and evaluated, and it is compared with the export of Georgia from the Commonwealth of Independent States (CIS) in terms of export volume, specific weight, and growth rate. The article presents the trade balance of Georgia with the European Union, based on which balance normalization indices are calculated, which are evaluated negatively. The article also calculates the indices of the intensity of trade with the EU (Lij), which were found to be more than one unit of the share taken for analysis. This situation is evaluated positively in the article, and it is also mentioned that Georgia's export intensity with the European Union, i.e. its intra-regional export index, is twice as high as the similar world index in relation to the European Union. The turnover of export trade from Georgia to the European Union is considered insufficient in the article, and the recommendations for its expansion are presented. Among them are: expansion of the nomenclature of export goods, production of new high-tech and highly qualified export goods, production of quality goods corresponding to the European standards and others. Keywords: export potential; Trade with the European Union; trade balance; balance