ეკონომიკის ტრანსფორმაციის ინსტიტუციური მოდელები

The transition from socialism to capitalism in former socialist economies is one of the main economic events of the twentieth century. Interest in research on transition has grown over time and it shows notonly that institutions matter, but also how their evolution depends on initial conditions and on sustainedpolitical support. Despite the similar constitutions and formal rules adopted by the different countries the evolutionary path of institutions can vary widely across different countries as long as it is not determinedsolely on the basis of formal rules and constitutions but informal institutions have an impact as well.
The aim of the Master’s thesis is to analyze the institutional environment and evaluate its impact on the Georgian economy.
How institutions affect economic performance is observed through theoretical models and empiricalevidence. Transition models can be distinguished on the basis of different methods of economic analysis,different speeds of implementing the transition policies and the different political structures. As a resultfive alternative models of transition come into being.
Using Heritage Foundation’s Index of Economic Freedom as a proxy for institutional environment, which reflects the key elements of the new institutional economics, VEC model provides evidence that ithas a positive and statistically significant impact on GDP gap both in the short-run and long-run.