The Influence of Promotion on Marketing Decision-Making: A Case Study of Albtelecom & Eagle Mobile in Albania

Abstract

This paper investigates the export-led growth (ELG) hypothesis within the context of Georgia, a transition economy seeking deeper integration into global markets. The ELG theory suggests that economic growth is driven by increasing export activity, which enhances market access and competitiveness. For Georgia, the twin forces of economic liberalization and European integration present a timely opportunity to leverage exports as a catalyst for sustainable development. Utilizing annual time series data from 1990 to 2016, the study applies the Engle-Granger cointegration technique and Granger causality tests to evaluate long-term and short-term relationships between exports and GDP growth. Empirical results reveal the existence of at least one cointegrating vector, confirming a stable long-run equilibrium relationship between exports and economic growth. Moreover, bidirectional causality is identified, indicating mutual reinforcement between export activity and GDP growth. These findings underscore the importance of adopting export-oriented strategies and market diversification policies to support Georgia’s economic trajectory. The study provides critical insights for policymakers, investors, and international trade bodies interested in leveraging exports as a core pillar of economic development in emerging and transitioning markets.