 An Application of the Growth Diagnostics Framework: The Case of GeorgiaYaroslava Babych and Michael Fuenfzig No 001-12, Working Papers from International School of Economics at TSU, Tbilisi, Republic of Georgia Abstract: This paper applies the Growth Diagnostics framework and attempts to identify the binding constraints to economic growth in Georgia. While many policies potentially promote economic growth in practice only policies that relax the binding constraint do so. In contrast, policies that relax non-binding constraints will by definition do little or nothing to promote economic growth. This study builds on an existing growth diagnostics exercise by the Government of Georgia and the Millennium Challenge Corporation, but comes to different conclusions. The existing study found that human capital and road infrastructure are binding constraints to economic growth in Georgia. In contrast, we find that lack of property rights, broadly interpreted, is the binding constraint to economic growth in Georgia. We argue that lack of property rights is unlikely to be the risk of expropriation. Instead, property rights have to be interpreted broadly, and encompass issues such as political and institutional stability, regional conflicts, the rule of law, and judicial independence. Pages: 45 pages Published Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:tbs:wpaper:12-001 Access Statistics for this paper More papers in Working Papers from International School of Economics at TSU, Tbilisi, Republic of Georgia Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.