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ISET Economist Blog

A blog about economics in the South Caucasus.
Aug
14

Georgia – Potential Regional Hub for Automobile Trade

Car export was 20.5% of the total exports in 2011 and it had the highest share in total exports, among all export goods. What a striking fact! So, what does this mean for Georgia and how can we become regionally more competitive in car-trade? How can we meet the demand on European, Japanese and US cars in Caucasian and Central Asian markets by becoming a regional trade and transit center for those cars? Since 2005, car exports have been steadily increasing, in value and as a share of total exports. The correlation between car exports and imports is 0,67...
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Guest — Salome
* founders OF a re-exporter firm
Wednesday, 15 August 2012 12:12 PM
Guest — Salome
Let's become founders a re-exporter firm together with other ISETers, we'll have enough information, coordination and I'll repair... Read More
Wednesday, 15 August 2012 12:12 PM
Guest — Nodari
I have a lot of remarks regarding your post and I will structure them properly and come back with a comment.
Wednesday, 15 August 2012 10:10 PM
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May
23

Regional Integration or Transit Corridor?

This research paper by Tony Venables has some interesting implications for the South Caucasus:  Better integration with a resource-rich economy is extremely valuable for the resource-poor. Remote and land-locked developing countries have very limited export potential with the external world … Regional integration enables them to earn foreign exchange via their exports to the resource-rich partner. The benefits arise as the prices of these regionally traded goods are bid up, raising wages and creating a terms of trade gain for the resource poor ...
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Guest — Eric
Georgia has doubled its exports to Azerbaijan in the first quarter of 2012 to $121mln. Azerbaijan is now Georgia's #1 export desti... Read More
Wednesday, 23 May 2012 4:04 PM
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Apr
17

Carrefour in Georgia

I have just heard that the French retail giant Carrefour is entering Georgia. This is good news. Carrefour is the master or combining low prices with the high (or at least decent) quality. It is also an inventor of hypermarket concept. Good quality price ratio and convenience are things the Georgian consumer is craving for. But there is much more to this fact than pure benefit for the Georgian customer. As the worlds second largest retailer, after Walmart, Carrefour commands the supply chain that circles the globe. For example, my milk, as Carrefour cust...
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Guest — Michael
Not to mention that more competition will hopefully drive down markups. See also this article http://www.finchannel.com/Main_News/... Read More
Tuesday, 17 April 2012 3:03 PM
Guest — Carrefour in Georgia
[...] piece has also appeared on the ISET Economist blog.   You think others should also read this? - [...]
Tuesday, 17 April 2012 5:05 PM
Guest — Anna
Well, Michael, I am not an economist, but judging by the (same) price of gas on all the gas stations around the country makes me t... Read More
Tuesday, 17 April 2012 10:10 PM
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Feb
29

Bread and Circus in the South Caucasus

Last week, The Economist published a comparison of the costs of pancake ingredients across many countries of the world. The pancake recipe used for the calculations included flour, eggs, milk and butter – all of which are also part of the Khachapuri Index regularly compiled by the ISET Policy Institute. Thus, incorporating Armenia, Azerbaijan and Georgia was a piece of (pan)cake! Table 1: Cost of pancake ingredients (12-15 portions) in the South Caucasus, USD   The good news is that pancakes (and khachapuri) are still a lot cheaper to cook in the S...
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Guest — Zak
Indeed a puzzling finding for an outsider. However, knowing one of the countries pretty well I guess this is a clear demonstration... Read More
Wednesday, 29 February 2012 3:03 PM
Guest — Eric
Thanks for noting - I changed the title to South Caucasus. As for Georgia being more liberal than Armenia, in the context of the a... Read More
Wednesday, 29 February 2012 11:11 PM
Guest — i.j.
Well, I wonder who decided to use the word "Caucasus", not even "South Caucasus" or "Transcaucasia", but "Caucasus" when somebody ... Read More
Wednesday, 29 February 2012 10:10 PM
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Feb
21

Easy Export

Recently the Georgian National Investment Agency launched the internet portal Trade with Georgia.  This internet page aims to facilitate exports by providing information to Georgian firms on export procedures and regulations, and by providing potential foreign buyers with a database of Georgian products. The customs reforms that lowered and abolished import tariffs, and reduced bureaucratic import procedures are well-known; at the same time export procedures have also been simplified. Of course one obstacle remains: Georgia can reform its export pro...
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Guest — Michael
The role of the Georgian Postal Service is actually interesting. Georgia seems to have adapted to a de facto non existing mail ser... Read More
Wednesday, 22 February 2012 1:01 AM
Guest — Zak
Smart move by Peruvians! And indeed a good idea for Georgia. Small entrepreneurs could use large number of emigrated relatives/nei... Read More
Tuesday, 21 February 2012 5:05 PM
Guest — Yasya
Definite potential! There is unquestionably a demand for Georgian tea in Ukraine. I normally bring at least 3-4 large boxes with m... Read More
Tuesday, 21 February 2012 10:10 PM
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Dec
24

The Georgian Christmas tree

What would Christmas be without a Christmas tree? In Georgia, in Europe or anywhere else in the world. But little known to most Europeans, most trees sold in Europe can trace their origin to Georgia. It is the seeds of the Nordmann fir which are exported from Georgia to Christmas tree farms in Denmark, Germany and other countries. Why? The Nordmann firs from the mountain regions of Georgia are some of the finest in the world – what Bordeaux is for the wine world, Ambrolauri in Racha is for Christmas tree producers. Already in the 1960s Danish and Ge...
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Guest — stardust
Merry Christmas!May we all find peace and joy, kindness and good cheer this holiday season!
Sunday, 25 December 2011 1:01 AM
Guest — Eric
Merry Xmas, Michael! It took me 20min to read your post and type this short message using my brand new Kindle. I found it under a ... Read More
Sunday, 25 December 2011 3:03 PM
Guest — Giorgi Balakhashvili
Hello everyoneMy uncle is exporting the seeds of Abies Nordmanniana for 10-15 years. It is the only business at the moment that Ge... Read More
Thursday, 29 December 2011 8:08 PM
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