Economic integration of South Caucasus countries: Current potential and main directions

UNIWEST Education & Project Center, Bulbul avenue 15, AZ1000 Baku, Azerbaijan

^* Corresponding author: bayramovalaman23@gmail.com

Abstract

The South Caucasus region, comprising Armenia, Azerbaijan, and Georgia, has witnessed significant political and economic developments in recent years. This article explores the current potential and main directions for economic integration among these countries. First, the article examines the economic landscape of the South Caucasus, highlighting the unique strengths and challenges faced by each country. It analyzes key sectors such as energy, agriculture, tourism, and manufacturing, and explores the potential for cross-border collaboration and trade. The article then delves into the existing frameworks for economic integration in the region, including the Eurasian Economic Union, the Commonwealth of Independent States, and bilateral trade agreements. It evaluates the benefits and limitations of these frameworks and discusses the potential for deeper integration among South Caucasus countries. Next, the article explores the main drivers of economic integration in the region. It discusses the role of infrastructure development, including transportation and energy networks, in facilitating trade and connectivity. It also examines the importance of institutional reforms, harmonization of regulations, and investment promotion to foster economic cooperation. Finally, the article identifies key recommendations for policymakers and stakeholders to realize the potential of economic integration in the South Caucasus. Overall, this article provides a comprehensive overview of the current potential and main directions for economic integration among South Caucasus countries. It highlights the importance of regional cooperation and outlines strategies to harness the economic opportunities that integration can bring.