[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-108560-en":3,"doc-seo-108560-105":31,"detail-sidebar-cat-0-en-105":84},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},108560,8796095461564,"Liam","https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d",8,"Research & Report","Georgia Country Economic Memorandum - Chapter 4 - Connecting Georgia","Georgia’s development agenda in Chapter 4 emphasizes that integration is central for small economies: openness enables exporters to reach scale, strengthens domestic efficiency via access to goods and services, and lowers prices for consumers. The chapter shows that integration has supported Georgia’s growth, yet exports remain concentrated in low value added goods and services, with limited firm participation and weak spillovers across sectors. It highlights the need to improve product sophistication, innovation, connectivity, certification, export promotion, and trade financing, while noting risks from the war in Ukraine and reforms tied to EU accession and DCFTA implementation.","Public Disclosure Authorized Public Disclosure Authorized  \nGeorgia Country Economic Memorandum  \nChapter 4: Connecting Georgia   \nConnecting Georgia  \nKey Messages  \n1. Integration is a key ingredient of development, especially for small economies. Exploiting the opportunities from the global economy has been a common feature of all successful development episodes (Commission on Growth and Development, 2008) . Openness allows exporters from small markets the opportunity to achieve economies of scale. It also makes domestic companies more efficient by facilitating access to goods and services that are not available at home (or are available at higher prices or lower quality) and gives consumers more choices and lower prices. More importantly, openness allows ideas, technologies, and know-how from the rest of the world to flow freely. And while recent developments in globalization and new technologies may have raised the bar for developing countries to integrate, openness will remain important for growth as export opportunities in manufacturing will remain for competitive, connected and capable economies (Hallward-Driemeier & Nayyar, 2018) . In addition, services are also providing additional opportunities in case countries can lower barriers to trade, expand use of digital technologies and build-up skills (Nayyar, Hallward-Driemeier, & Davies, 2021) .  \n2. Integration has underpinned Georgia’s growth story. Trade expanded briskly in the decade prior to COVID-19, and in 2019, Georgia’s external trade in goods and services exceeded the expected level given its income. However, while Georgia now exports more products to more markets, goods exports remain concentrated in low value added and unsophisticated products, with concentration increasing over the last decade. Opportunities provided by deeper trade integration with more developed markets have not fully materialized—Georgia exploited only 4.2 percent of the market potential of its exports structure in 2019. Few firms get to export, and export relationships do not survive long. Services generate  \n70 percent of the exports value-added in the country, exceeding most peers. Again, most exported services are low-skilled and don’t provide value-added to other sectors. In fact, the largest share of exported services value added is generated within the same sector, and only 30 percent adds value to other export sectors (other services, agriculture, or industry) .  \n3. But there is considerable room to increase Georgia’s integration. This will require better product quality, export orientation, growing integration in global value chains and improving connectivity. However, the war in Ukraine threatens to undermine trade flows and arrangements, as the countries impacted are important trading partners for Georgia. On the bright side, the EU accession process has the potential to serve as an anchor for the reforms that are needed, while also providing Georgia with an opportunity to more closely integrate and to facilitate convergence in income levels with aspirational peers.  \n4. Georgian products need to be more sophisticated – to do this, Georgian firms need to innovate and absorb technology more rapidly and need to be more export-oriented. Government support programs with clear indicators to measure improvements in productivity and competitiveness can help (see Chapter 3 on Firm Productivity) . This would also mean supporting firms to adopt international certification for their products and services, something that even less demanding export markets are increasingly looking for. A stronger export promotion function, including through an efficient network of foreign offices, can help potential exporters to overcome the information asymmetries and discovery costs associated with seeking access to external markets. In addition, greater availability of trade financing can help more firms increasingly orient towards exports. Further gains are available on trade policy, including efforts ","cbCaifbKm8eWtMJ7","https://ap.wps.com/l/cbCaifbKm8eWtMJ7","pdf",1742782,4,1,45,"English","en",105,"# Key Messages\n## Integration as a development ingredient\n## Georgia’s growth and export performance\n## Remaining room to increase integration\n## Sophistication, innovation, and export orientation\n## Integration into global value chains\n## Services as an export engine","[{\"question\":\"What actions does the chapter recommend to deepen Georgia’s integration and improve competitiveness?\",\"answer\":\"It calls for better product quality, stronger innovation and technology absorption, greater export orientation, and government support tied to measurable improvements. It also recommends adopting international certifications, expanding export promotion networks, increasing trade financing, and advancing market access through free trade agreements and DCFTA-related non-tariff barrier elimination.\"}]","Georgia Country Economic Memorandum - Chapter 4 - Connecting Georgia | PDF",1784472270,113,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":79,"head_meta":81,"extra_data":83,"updated_unix":29},"georgia-country-economic-memorandum-chapter-4-connecting-georgia","",{"@graph":37,"@context":78},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,52],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":51},"https://docshare.wps.com/document/research-report/",3,{"item":53,"name":13,"@type":44,"position":20},"https://docshare.wps.com/document/georgia-country-economic-memorandum-chapter-4-connecting-georgia/108560/",{"url":53,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":42,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-29","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72],{"name":73,"@type":74,"acceptedAnswer":75},"What actions does the chapter recommend to deepen Georgia’s integration and improve competitiveness?","Question",{"text":76,"@type":77},"It calls for better product quality, stronger innovation and technology absorption, greater export orientation, and government support tied to measurable improvements. 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