Proceedings of The 2nd World Conference on Management, Business, and Economics
Statistical Analysis of Trade Relations between Germany and Georgia
Dr. Giorgi Mikeladze , Prof. Dr. Simon Gelashvili
The article discusses Georgian-Germany trade relations and empirically realizes the models of Georgian export to Germany and import from Germany to Georgia. Empirical models are based on the commonly used economic theory of the extrenal determinants (real exchange rate, total price index, volume of income).
According to the empirical model of import the current value of import (from Germany to Georgia) is positively related to the real exchange rate and the amount of Georgian GDP. Furthermore, the implementation of the empirical model reveals the impact of factors (COVID 19, government spending in Georgia, etc.) affecting to the economies of countries and trade relations, correspondingly.
Empirical model of export presented in the paper is not statistically significant, however, modifying functional specification does not improve statistical characteristics of model.
keywords: Empirical models of trade relations between Georgia and Germany, Export, Import, Impact of COVID 19.