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

By Thorvaldur Gylfason, Eduard Hochreiter

October 1, 2008

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Thorvaldur Gylfason, and Eduard Hochreiter. Growing Apart? A Tale of Two Republics: Estonia and Georgia, (USA: International Monetary Fund, 2008) accessed December 25, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Banking, Education, Human capital, Labor, Public expenditure review

Keywords: Gross national income, Output ratio, Production function, WP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/235
Stock No:

WPIEA2008235
ISBN:

9781451870930
ISSN:

1018-5941

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