The Economics of Regulatory Impact in Evolving Industries: Case of Georgian Postal and Courier Service Market

Abstract

An economic impact analysis of legal barriers imposed by the Georgian Government on an evolving postal and courier service market and statutory monopoly’s economic rationale are dealt with in this article while assessing its shortcomings and reviewing commitments incurred by Georgia with the EU-Georgia Association Agreement (specifically, with the Deep and Comprehensive Free Trade Area).

Findings of the paper demonstrate that the legal barriers restricted free and fair competition in the postal and courier service market by fostering a statutory monopolist, a state-run Ltd Georgian Post, which enjoyed preferential treatment through establishing statutory but discriminatory barriers against its competitors. The precedent of curbing free and fair competition is bound to impede economic growth as the government is not in the position to uphold openness and transparency of the market, enforce competition policy and respect the spirit of liberalizing access to trade in the postal and currier services of Georgia.