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

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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.