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A two-user Gaussian Z-Interference Channel (GZIC) is considered, in whichencoders are connected through noiseless links with finite capacities. In thissetting, prior to each transmission block the encoders communicate with eachother over the cooperative links. The capacity region and the sum-capacity ofthe channel are characterized within 1.71 bits per user and 2 bits in total,respectively. It is also established that properly sharing the total limitedcooperation capacity between the cooperative links may enhance the achievableregion, even when compared to the case of unidirectional transmittercooperation with infinite cooperation capacity. To obtain the results,genie-aided upper bounds on the sum-capacity and cut-set bounds on theindividual rates are compared with the achievable rate region. In theinterference-limited regime, the achievable scheme enjoys a simple type ofHan-Kobayashi signaling, together with the zero-forcing, and basic relayingtechniques. In the noise-limited regime, it is shown that treating interferenceas noise achieves the capacity region up to a single bit per user.

The Approximate Capacity Region of the Gaussian Z-Interference Channel with Conferencing Encoders