THE EURASIAN ECONOMIC ALTERNATIVE – 2014-4

At the boundary of opportunities and challenges

Summary

Atom Sh. Margaryan

The Eurasian economic union (EEU) is the high form of integration between member countries aimed towards development of a single market space. It involves not just establishment of a customs union but also agreed upon and common economic policies in certain areas. The Republic of Armenia as a small country is anyhow forced to be a part of this process. The article does not include all the potential risks and benefits of accession to the Eurasian economic union. However, there are pros and cons that are evident at this stage of the process. This is an expanding market, inflationary potential, impact on budget revenues, the labor market, relations with third countries, investment opportunities. Entry into the EEU a good reason for Armenia to rethink their international economic relations: the balance of trade issues, promoting local producers. At the same time, there are so-called governance and institutional risks associated with the administration of the new system, the qualifications and awareness of officials and businesses.

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