Does the WTO Membership Economically Matter? Evidence from South Caucasus Economies
ASERC Journal of Socio-Economic Studies, Volume2, Number 1, (2019) Pages 30-48
19 Pages Posted: 12 Jul 2019
Date Written: July 10, 2019
Motivated by the researches questioning the eﬀectiveness of GATT/ WTO, and WTO membership on member country economies, this article studies the impact of joining to this organization on main macroeconomic indicators: economic growth, exports, imports, government and households ﬁnal consumption expenditures, and net FDI inﬂow in case of South Caucasus economies for the period 1994-2012. Based on multiply regression model for time-series, and panel data analyses for Georgia, Armenia, and Azerbaijan, the article makes a signiﬁcant contribution to the existing literature. That is, research ﬁndings support the claims that WTO membership aﬀects countries diﬀerently, depended on the structure of economies. This belongs to the impact on economic growth, exports, and imports. Nevertheless, WTO does not strongly maĴer for net FDI inﬂow. Final consumption expenditures of both governments and households are strongly aﬀected by WTO membership. The membership causes to increasing the government ﬁnal consumption expenditures and signiﬁcantly decreasing the household consumption expenditures.
Keywords: WTO Membership; Economic Growth; International Trade; Consumption; FDI; South Caucasus Economies
JEL Classification: F10, F15, F13, P51
Suggested Citation: Suggested Citation