მაკუტენიენე დაივა

ასოცირებული პროფესორი, ეკონომიკისა და მენეჯმენტის ფაკულტეტი, ალექსანდრე სტულგინსკის უნივერსიტეტის ეკონომიკის ინსტიტუტი, კაუნასი, ლიტვა

რაულუსკევისიენე იოლანტა

პედაგოგი, ეკონომიკისა და მენეჯმენტის ფაკულტეტი, ალექსანდრე სტულგინსკის უნივერსიტეტის ეკონომიკის ინსტიტუტი, კაუნასი, ლიტვა


Evaluation of Export Diversification of Agricultural and Food Products in Georgia

(თანამედროვე ეკონომიკა, ეკონომიკური პოლიტიკა და სოციალურ-დემოგრაფიული პროცესები)


Introduction and aim: A country, in order to be and remain competitive, has to cooperate with other countries, first of all, to be open to international trade. Openness has greater benefits for small countries, as it helps to solve the problem of a small local market – it enables the expansion of the market by exporting country-produced products, better meeting the needs of consumers when importing them, attracting foreign investment, etc. In order for various economic shocks to have a lesser impact on exports, it is necessary to maximize the diversification of the products exported, both in terms of goods and markets. The aim of the study is to assess the trends of Georgian agricultural and food export diversification. During the analysis of the country's exports of agricultural and food products, the dynamics of exports by commodity groups and countries, the dynamics of their export share in the total export of the country, the geography and the number of export partners, the similarity of Georgia's pattern of trade with the EU and the rest of the world as well as the dynamics of the concentration of export and export markets, evaluated according to the degree of diversification, were analyzed.

Research methodology: Systematic literature review, logical analysis and synthesis, methods of statistical analysis, graphical representation.

Results and implications: The statistical survey showed that the export value of Georgian agricultural and food products increased by 2.3 times during the considered period, and by 2.6 times in the EU. The production of these products is significant for the country's economy and is oriented towards exports, accounting for about one third (in the EU – about 40%) of total exports. Although the export structure of the country's agricultural and food products was dynamic during the considered period, it must be noted that the variety of products exported is quite limited. The structure of exports is dominated by two groups of products, 90% of export value on the international market was made up of six groups of products, in trade with the EU – two groups of products (on average, during the period between the years 2013 and 2016). The export structure of agricultural and food products from Georgia and the rest of the world was more similar to that of trade with the EU, but since 2008, these differences are not so pronounced. In the years 2005 and 2016, exports of Georgian agricultural and food products to the EU and the rest of the world were very poorly diversified, although the level of concentration to the EU remained higher throughout the period considered (except in 2008). This shows that the country's exports to the EU market were less diversified than in the case of global exports, which indicates an irrational structure of exports of agricultural and food products. It is also important to note that exports of agricultural and food export partners have increased significantly during the considered period, and export trends have changed as well.

Conclusion: During the considered period, Georgian agricultural and food export to the EU and the world was only slightly diversified, whereas the concentration level was higher in the case of the trade with EU. It may reflect that the country’s export composition in the EU agricultural and food markets was irrational and less specialised. The main agricultural and food export partners of Georgia are closest countries (starting from Russia, Turkey, Armenia), EU members as Germany, Italy, United Kingdom, also China, Singapore, USA. The revealed trends in the Georgia’s agricultural and food export structure and export concentration by product groups and market geography suggest the slowly increasing possibilities to develop agricultural and food export and more effectively compete in the EU and world markets.

Keywords: agri-food products, export, diversification