Faculty of Economics of Vilnius University
9. May, 2008

Determinants of economic growth: A comparative analysis of Estonia and Georgia

Skrifað ásamt Eduard Hochreiter, í Economic Transformation of Central and Eastern European Countries, Conference Proceedings.


We study and compare the economic growth performance of Estonia and Georgia since the collapse of the Soviet Union in 1991. We focus on the contributions of increased efficiency in the use of capital and other resources (intensive growth). Our main findings show that good governance, institutional reforms, and improvements in the educational system play a more significant role in raising economic output and
efficiency. While Georgia continues to have problems related to weak governance in the public and private spheres, Estonia has made major advances in all areas explaining her superior economic performance.