Analysis of the Relationship between Service Export and Economic Growth in the Framework of South Caucasus Countries

Abstract

In this context, the current article examines the impact of the service sector on the economic growth of Azerbaijan, Armenia, and Georgia. In the study in which three separate causality analyses were made, the results of the Toda-Yamamoto causality test in Azerbaijan and Armenia showed no causality between service exports and economic growth, while for Georgia, there was a unidirectional causality from economic growth to service exports. This study, handled with a different perspective due to the inadequacy of studies on service exports in South Caucasian countries, contributes to filling the gap in the literature on the subject.