HOW IMPORTANT IS MEMBERSHIP TO THE WORLD TRADE ORGANIZATION ECONOMICLY?

Abstract

In this article, the impact of WTO accession on key macroeconomic indicators: economic growth, export, import, final consumption expenditures of government and households, and direct impact on the economies of the South Caucasus countries. The inflow of foreign direct investment for 1994-2012 was studied. The impact of the time series on the economy was considered on the basis of a multiplication regression model and a panel analysis of data for Georgia, Armenia and Azerbaijan. That is, the results of the study will affect countries in WTO membership in various sectors that depend on the structure of the economy. This will have a significant impact on economic growth, exports and imports. However, the World Trade Organization does not strictly require the inflow of foreign direct investment. Membership leads to an increase in government final consumption expenditures and a significant reduction in household consumption expenditures.