How to Estimate the Degree of Economic Integration on the Basis of Statistical Methods

Abstract

Purpose of the article: The purpose of the present paper is to identify the methods of statistical evaluation of Georgia’s economic integration with the world and calculate the methods of an integration coefficient on the example of Georgia. Methodology/methods: We conducted the study by using the methods of statistical survey, grouping and analysis: relative-value, mean-value, time series and statistical variation introduction methods. The trend was identified by using simple methods, such as average absolute increase and mean annual growth rate and linear function as an analytical method. Scientific aim: The scientific aim of the paper is to determine and calculate the coefficient of integration of Georgia with the world economy, as the total aggregated mean arithmetic value of the mean values of the percentages of the integration coefficient values in gross domestic product for each factor calculated in dynamics. Findings: It was found that the coefficient of integration of Georgia with the world economy was 20,2% in the considered period. If considering that the percentage value of this coefficient may vary from 0 to 100. It should be considered that we evaluated the level of integration of the countries by using a three-step scale based on an equalinterval grouping: I) Low (0-33%); II) Average (33.3-66.6%); and III) High (66.6-100%). As the integration coefficient of Georgia in the world economy in 2008-2014 was 20.2%, this means that Georgia realized only 20.2% of its foreign economic relations potential in this period. Conclusions: In general, it should be noted that the degree of integration of Georgia in the world economy is quite low and has deteriorated since 2003-2008. As per our calculations, it has decreased by 1.1%. As it turns out, the reduction of the index of integration was mostly the result of the reduced share of investments in GDP.