Relevance. Regional development has always been a focus of scientific attention. At the same time, regional development, and particularly the development of Armenia's border regions, is strategic in nature and of particular interest from the perspective of national security. Given Armenia's negative migration balance and the high level of out-migration from the country's regions, it is important to study the development of border regions and identify key factors hindering the development of an effective economic system at the regional level. Purpose of the Study. The aim of the study was to compare the border regions of the Republic of Armenia with the border regions of Georgia. The study was based on a review of the theoretical and practical postulates on regional development and the development of border regions as set out in the scientific literature. These issues were then examined using the Armenian economy as an example. Data and Methods. The analysis is based on a review of statistical data characterizing the macroeconomic situation in the border regions of Armenia and Georgia. The analysis examined key indicators of economic development in the border regions of Armenia and Georgia in detail, with the aim of comparing and identifying vulnerabilities in the development of Armenia's regions. Results. The study concluded that, at the current stage of development, Armenia's border regions lag behind their neighbors in virtually all macroeconomic indicators, necessitating a revision of the country's regional policy to strengthen the border regions' economic position. Conclusion. The main conclusion of the study is the need to revise Armenia's regional policy in the medium and long term.