ქართ | Eng

ISSN 2449-2396 (Print) | E ISSN 2449-2612 (Online)

JEL Classifications: F5; R1; R4; R5; O1; O2


PROSPECTS OF DEVELOPMENT OF GEORGIA’S TRANSIT FUNCTION AND ITS IMPACT ON THE COUNTRY’S ECONOMY

Author: Irakli Danelia | Published: 2019-07-29 | Pages: 104-116

Full Text

For Citation: Danelia I. (2019), Prospects Of Development Of Georgia`S Transit Function And Its Impact On The Country`S Economy, Globalization And Business, N7, pp. 104-116. (In Georgian).

Abstract

Depending on geographical location, the development of Georgian economy was directly related to the efficient use of transit function. For Georgia, as a transit function, the importance of transportation infrastructure is important in the formation of its geo-economic positioning strategy. The acquisition, realization and development of Georgia›s transport potential began in the 90s of the 20th century. Nevertheless, complex research and analysis on the possibilities of development of transit function of the country in Georgian economic literature is not practically investigated yet. Morover, there are not identified determinants on the development of the sector, and their impact on the economic development of the country is not defined either.

The study aims to analyze capabilities of Georgia›s transit potential and to determine its influence on economic development of the country in the process of integration of modern world economy. The following objectives are derived:

  • Identification of significant stimulant determination of development of transport / logistics field and its effectiveness;
  • Establishment of transit / logistics potential for economic development of the country.

The objective of the research is the transport and logistics sector in the Member States of the Organization for Economic Cooperation and Development, the Caucasus and Central Asian countries as an important instrument of economic development of the country.

The research is subject to comparative analysis of the targeted and consequential indicators of transport and logistics sector in the member states of the Organization for Economic Cooperation and Development, in the Caucasus and Central Asia.

The theoretical foundation of the research is the works of various Georgian and foreign researchers about the study.

The survey was based on the World Bank, the Organization for Economic Development and Cooperation, Eurostat, National Statistics Office of Georgia, Georgian and Foreign Professionals, Georgian and Foreign Marine Ports, Railway and Motor Operators, as well as the laws of Georgia.

The work is based on analysis and synthesis, quantitative, qualitative, groupings, and medium-size, graphic expression, indexing, comparison, regression and correlation methods.

The scientific innovation of the research is the attempt to conduct a complex examination of transit capabilities in Georgia, as a result of which:

  • Using the Panel Data Analysis Method is reasonable as the development of the transport / logistics sector is a very positive role in the socio-economic development of the country, the main determinant of which is the infrastructural investment.
  • Panel examinations and econometric calculations for member and partner countries of the Organization for Economic Co-operation and Development (OECD) with transit function and sea exit confirmed that investments in the transport/logistics infrastructure of these countries are the most efficient.

The paper can be used to overcome the challenges of successful transit systems in Georgia and its successful integration into the world economy. Consequently, the findings and recommendations of the research topic are appropriate for the Ministry of Economy and Sustainable Development, the Ministry of Regional Development and Infrastructure, the Parliament of Georgia and other sectoral authorities, non-governmental organizations, scientific organizations and other stakeholders. In the process of teaching geo-economics, «international economy», «world economy» and their neighboring disciplines.


Keywords

TRANCAUCASUS CORIDOR, TRANSIT, TRANSPORTATION, LOGISTICS, INVESTMENT, ECONOMIC GROWTH


References

  1. Abesadze, G. Abesadze, T. (2011). Globalization and peculiarities of Georgia›s transit function. Tbilisi. (In Georgian).
  2. Abesadze, R. (2018). Global economic security, international scientific conference, university publishing house. Tbilisi. (In Georgian).
  3. Abralava, A. (2005). National economy and globalization. Tbilisi. (In Georgian).
  4. Ananiashvili, I. (2018). Econometric analysis of peculiarities of fiscal and monetary instruments on joint demand in Georgian economy, globalization challenges in economy and business. Tbilisi. (In Georgian).
  5. Baratashvili, E., Zarandia J., Abalava A. (2009). Regionalism: Theory and Practice. Tbilisi. (In Georgian).
  6. Basilia, T., Silagadze, A., Chikvaidze, T. (2001). Post-socialist transformation: the Georgian economy on the eve of the XXI century. Tbilisi. (In Georgian).
  7. Gedenidze, m. (2013). Architectural and functional-planning organization of the Silk Road (Traceka) section of Georgia. Methodical guidelines and a project project in urban planning. Technical University Publishing House. Tbilisi. (In Georgian).
  8. Gelashvili, S., Maghradze, N. (2018). Geographical statistics of direct foreign investments in Georgia. Collection of TSU. Tbilisi. (In Georgian).
  9. Danelia, I. (2019). Peculiarities and possibilities of development of transit corridor of Georgia. Journal: «Economy». Tbilisi. (In Georgian).
  10. European Neighborhood Policy (2006). Action Plan, EU-Georgia. (In Georgian). Tbilisi. http://smr.gov.ge/Uploads/__a2dacc8e.pdf
  11. Tvalchrelidze, A., Silagadze, A., Keshelashvili, G., Gegia, D. (2011). Georgia›s socio-economic development program. International Foundation for Sustainable Development – Georgia. Tbilisi. (In Georgian).
  12. Ismailov, E., Papava, V. (2007). Central Caucasus - the essence of geopolitical economy. Search. «Diogene». Tbilisi. (In Georgian).
  13. Maksov, M. (1998). Caucasus - complex analysis, ways of political and economic stabilization, issues of geopolitics. Tbilisi University Press. Tbilisi. (In Georgian).
  14. Narmania, G. (2016). Waiting for Silk Road. J. Forbes Georgia. Tbilisi. (In Georgian).http://forbes.ge/news/1099/abreSumis-gzis-molodinSi
  15. Natroshvili, N. (2018). «APM Terminals» plans to build Mega Port in Poti. (In Georgian). http://www.netgazeti.ge/GE/105/business/45909/
  16. Pavliashvili, S., Garakanidze, Z. (2014). Georgian Transport Corridor - Problems and Prospects. Tbilisi. (In Georgian).
  17. Sanikidze, G., Kiguradze, N. (2001). Modern international relations. Tbilisi. (In Georgian).
  18. Putkaradze, R. (2011). International markets and main business centers. TSU, Lecture Course: «International Business», Chapter II, «Universal». Tbilisi. (In Georgian).
  19. Anderson, J. (2009). 2009 Tax Misery & Reform Index. J. Forbes. Tbilisi. www.forbes.com/global/2009/0413/034-tax-misery-reform-index.html#51f9ab 9343b3
  20. Bedianashvili, G. (2016). The Global Business Environment, European Integration and the Cultural Potential of Social-economic Development of Georgia. Globalization and Business. Tbilisi.
  21. Bedianashvili, G. (2018). Formation of Knowledge Economy and Innovative Entrepreneurial Policy: Institutional Aspect. J. Globalization and Business. Tbilisi.
  22. Bird, R. M. (2008). Tax Challenges Facing Developing Countries. Institute for International Business Working Paper No. 9. Delhi. http:papers.ssrn.com/sol3/papers. cfm?abstract_id=1114084
  23. Boopen, S. (2006). Transport Infrastructure and Economic Growth: Evidence from Africa Using Dynamic Panel Estimates. The Empirical Economics Letters 5(1). (In China).
  24. Cameron, F. (2015). The Maritime Silk Road – an EU perspective. World Commerce Review. http://www.worldcommercereview.com/html/cameron-the-maritime-silk-road---an-eu-perspective.html
  25. Chania, M., Putkaradze, R. (2018). The Priorities of Georgian Economic Development in Conditions of Globalization.http://journals.euser.org/files/articles/ejme_v1_i1_18/Maia.pdf
  26. Cheng G. P. (2010). The Impact of Developments in the Logistics Sector on Economic Growth. (In China).
  27. Chu, Z., Wang, Q., Hong, J. (2011). Transport infrastructure and regional economic growth: Evidence from China. Springer Science+Business Media. (In China). https://www.researchgate.net/publication/225309603_Transport_infrastructure_and_regional_economic_growth_Evidence_from_China?
  28. Cohen, S. (1963). Geography and Politics in a World Divided. Random House. New York.
  29. Danelia, I. (2015). The Eurasian Union and the EU: mutually exclusive or mutually complementary economic systems. Journal: “Geoeconomics”. http://geoeconomics.ge/en/?p=2987
  30. Danelia, I. (2017). Main Determinants of Georgia›s Transit Function Development. European Scientific Journal (ESJ). https://eujournal.org/index.php/esj/article/view/10207
  31. Danelia, I. (2018). Black Sea Container Market and Georgia’s Positioning. European Scientific Journal (ESJ). http://eujournal.org/index.php/esj/article/view/11479
  32. Danelia, I. (2019). Georgia’s Container Market and The Black Sea Region. Journal: “Economic Alternatives”. https://www.unwe.bg/uploads/Alternatives/8_EA_1_2019_en.pdf
  33. Danelia, I. (2019). Georgia›s Geoeconomic Positioning with Political Concept. European Scientific Journal (ESJ).
  34. Danelia, I. (2019). Prospects of Development of Georgia›s Transit Function and Its Impact On The Country›s Economy. 4th International Conference - Actual Economic and Social Problems in Modern Globalization. Journal: “Globalization and Business”. European University. Tbilisi.
  35. Demurger, S. (2001). Infrastructure Development and Economic Growth: An Explanation for Regional Disparities in China? J. Comparative Economics, vol. 29, issue 1. https://www.researchgate.net/publication/222298076_Infrastructure_Development_and_Economic_Growth_An_Explanation_for_Regional_Disparities_in_China
  36. Hanaoka, S., Kawasaki, T. (2010). Survey Report on Freight Transport in Landlocked Countries in Central Asia. Graduate School of Science and Engineering. Tokyo Institute of Technology. Tokyo.
  37. Hayaloglu, P. (2015). The Impact of Developments in the Logistics Sector on Economic Growth: The Case of OECD Countries, International Journal of Economics and Financial https://ideas.repec.org/a/ejn/ejssjr/v5y2017i1p11-23.html
  38. Hu, K., Wang, X., Gao, K. (2012). Co-integration model of logistics infrastructure investment and regional economic growth in central China. (In China).
  39. Humpert, M. (2018). Maersk Container Ship Transits Arctic Ocean With Icebreaker Escort. https://www.highnorthnews.com/en/maersk-container-ship-transits-arctic-ocean-icebreaker-escort
  40. Hunter, S. T. (2000). Evolution of the Foreign Policy of the transcaucasian states. In Crossroads and Conflict: Security and Foreign policy in the Caucasus and Central Asia. Rourledge. New York.
  41. Implement TIR-EPD LANS, (16 Jun. 2016). International Road Transport Union. http://ofae.gr/media/ documents/2016/06/16/en-tir-epd-green-lanes-0303.pdf
  42. IRU/World Bank road freight transport service reform. (January 2017). https://www.iru.org/guide-to-road-freight-transport-reform
  43. ITF Transport Outlook. (2017). Rail Container Transport. OECD. https://www.ttm.nl/wp-content/uploads/2017/01/itf_study.pdf
  44. Kjellen, R. (2001). The State as a Living Organism. Review of International Studies. Berlin.
  45. Luttwak, E. N. (1993). The coming Global War for Economic Power. Philadelphia.
  46. Marinova, V., Abe, M., Hügel, J., Sceia, A. (2016). E-TIR: Towards Paperless Cross Border Trade. United Nations, ESCAP. https://www.iru.org/sites/default/files/2016-09/eTIR-report-towards-paperless-cross-border-trade-iru-unescap-unece.pdf
  47. Mody, A., Wang, F. (1997). Explaining Industrial Growth in Coastal China: Economic Reforms... and What Else? (In China).
  48. Papava, V., Silagadze, A. (2019). On the Georgian name of one key economic term “Gross Domestic Product”. J. Economics and Business, No. 1, pp.180-182. Tbilisi.
  49. Sezer, S., Abasiz, T. (2017). The Impact of Logistics Industry on Economic Growth: An Application in OECD Countries. Istanbul.
  50. Transcontinental Infrastructure Needs to 2030/2050 Organization for Economic Co-operation and Development (OECD). (2012). Mumbai Gateway Area Case Study, Opportunities And Challenges, Final Report. https://www.oecd.org/futures/ infrastructureto2030/49996110.pdf
  51. Vernon, R., Spar D., Tobin, G. (1991). Iron Triangles and Revolving Doors: Cases in U.S. Foreign Economic Policymaking. Santa Barbara.
  52. Wang, X. (2010). Transformation of Growth Pattern and Growth Sustainability in China. (In China).
  53. http://lpi.worldbank.org/
  54. http://www.economy.ge
  55. http://www.geostat.ge
  56. http://www.worldbank.org
  57. https://fiata.com/home.html

Globalization & Business European University European University European University mes.gov.ge erih plus mes.gov.ge EBSCO index copernicus Google Scholar Crossref Open Academic Journals Index Scientific Indexing Services International Scientific Indexing Daugavpils University