Structural transformation, trade and development: Georgia in comparative perspective

Abstract

The goal of the present paper is to analyze changes in the compositional structures of Georgia's economy, explore the related qualitative transformations and explain implications for trade and development. By comparing the evidence of several European countries, we put Georgia’s structural changes within a broader regional-level context. We rely on two key measures of structural transformation: sector employment shares in total employment and sector value-added shares disaggregated at the industry level. To explain trade implications, structural transformation indicators across exporting sectors are evaluated. The existing divides between structural transformation of Georgia and that of the Eastern European economies reveal those structural risks that can negatively affect regional positions of Georgia and its long-term economic development.

Keywords

• structural transformation
• trade
• economic development
• georgia
• transition economies
• eastern european economies