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Growing Apart? A Tale of Two Republics: Estonia and Georgia

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  • Thorvaldur Gylfason
  • Eduard Hochreiter

Abstract

We compare and contrast the economic growth performance of Estonia and Georgia since the collapse of the Soviet Union in 1991 in an attempt to understand better the extent to which the growth differential between the two countries can be traced to increased efficiency in the use of capital and other resources (intensive growth) as opposed to brute accumulation of capital (extensive growth). We infer that advances in education at all levels, good governance, and institutional reforms have played a more significant role in raising economic output and efficiency in Estonia than in Georgia which remains marred by various problems related to weak governance in the public and private spheres.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2007/wp-cesifo-2007-12/cesifo1_wp2155.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2155.

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Date of creation: 2007
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Handle: RePEc:ces:ceswps:_2155

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Keywords: economic growth; governance; transition economies;

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References

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Cited by:
  1. Thorvaldur Gylfason & Inmaculada Martínez-Zarzoso & Per Magnus Wijkman, 2014. "Can and Should the EU's Eastern Partnership be Saved?," CESifo Working Paper Series 4869, CESifo Group Munich.
  2. Thorvaldur Gylfason & Eduard Hochreiter, 2010. "Growing Together: Croatia and Latvia," CESifo Working Paper Series 3202, CESifo Group Munich.
  3. Zuzana Brixiova & Balazs Egert, 2010. "Modeling Institutions, Start-Ups and Productivity during Transition," CESifo Working Paper Series 2952, CESifo Group Munich.
  4. Kowalski, Tadeusz, 2009. "Comparative analysis of economic transformation in Poland and selected central European countries," MPRA Paper 16610, University Library of Munich, Germany, revised 2011.
  5. Thorvaldur Gylfason & Per Magnus Wijkman, 2012. "Which Conflicts can the European Neighbourhood Policy Help Resolve?," CESifo Working Paper Series 3861, CESifo Group Munich.
  6. Tadeusz Kowalski, 2013. "Poland’s Long-term Macroeconomic Performance and Recent Trends: A Comparative Analysis," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 14(1), pages 41-56, 05.

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