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The world economy has being taken certain steps towards a new context of mutual cooperation in trade activities, observing nations that are lessening trade fights between each other. In this context, the phenomenon of globalization is happening rapidly and widely, so that, as a dynamic process, it is covering all aspects of economic matters.
More importantly, globalization refers to a process in which geographic borders could be vanished and, at the same time, international transactions grow distinctly.
Further to internationalizing world markets, globalization has
provided a competitive environment of economic activities. To playa powerful role in the world economy and to achieve a higher rate of investment and growth, individual countries are intending to move toward regional integration.
Having conducted an investigation for the existence of a correlation between globalization and trade integration, this paper specifies an econometric model to follow up impacts of economic - regional convergence and outward - oriented policies on growth and welfare
situation of Caspian Sea Countries and Caucasian Republics.
Results obtained, as a whole, indicate that regional convergence throughout trade liberalization can significantly and positively affect economic growth of the block countries