Transformations  in
Business & Economics

THE RESULTS OF THE NEW ECONOMIC SYSTEM FUNCTIONING IN GEORGIA ACCORDING TO THE THREE 10-YEAR TIME PERIODS, SINCE THE RESTORATION OF INDEPENDENCE²
David Kbiladze, Rimantas Dapkus, Shorena Metreveli, Tamar Kbiladze

ABSTRACT: Based on a theoretical and empirical approach, the authors strive to evaluate transformation of the economy. The research examines the 30-year experience in economy transformation of post-Soviet Georgia, taking into account the complications following the shift from the planned economy to the market one. The research examines the challenges existing in the period preceding the socio-economic transformations in Post-Soviet countries, their causes, and the reforms implemented in Georgia to eliminate them and their outcomes. In the paper there are presented findings of a correlation and regression analysis of macroeconomic indices of Georgia based on empirical data.The authors considers the acuteness of the economic transformation process, particularly at its early stages, as well as the accomplishments of market reforms and their impact on the population’s living standards, well-being, and the economy as a whole. Notwithstanding certain success, Georgia remains economically dependent on import, a situation in which the components of sustainable development (social, environmental, and economic) require greater balance. The aim of the research was to examine the 30-year experience of the post-soviet period of the transformation of the Georgian economy, both according to the initial stage of the transformation as well as three ten-year time periods. Obtained findings can be beneficial for public policymakers in the implementation of government measures and as a basis for changes in the leadership of individual governments leading to increased economy development.

KEYWORDS:  economic independence, economic transformation, economic reforms, economic growth, sustainable development.

JEL classification:  E610, E660, H790, O110, P210, R110

²Acknowledgments:  Authors declare that they do not have any competing financial, professional, or personal interests from other parties.