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

Thorvaldur Gylfason and Eduard Hochreiter

No 2008/235, IMF Working Papers from International Monetary Fund

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). On the basis of a simple growth accounting exercise, 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.

Keywords: WP; production function; gross national income; output ratio (search for similar items in EconPapers)
Pages: 28
Date: 2008-10-01
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Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Growing apart? A tale of two republics: Estonia and Georgia (2009)
Working Paper: Growing Apart? A Tale of Two Republics: Estonia and Georgia (2007)
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