The Long-Run Economic Growth Burdens: Case of Georgia
After the collapse of the Soviet Union, Georgia passed the painful path of transformation. Despite mostly progressive reforms, still, after 27 years, the country couldn’t reach a stable growth. From 1991 to 1995 Georgia had a negative economic growth (-21.1%, -44.9%, -29.3% and -10.39% respectively 1991, 92, 93 and 1994 years). 2007 met the highest growth accounting for 12% but after the World Financial Crisis in 2008 economic growth has declined by 18.64% and accounted for 2.3%. In 2009 it was even negative. The economy declined by -3.6%. During the last few years, annual growth consisted of 3-4%. In order to boost the economy, it is important to be focused not only on a short but also on a long-run growth. Furthermore, the long-run growth drivers become more significant taking into account the situation of approaching the 4th industrial revolution. There are some burdens for the long-run growth. The obstacles which can be mostly characterized in the countries who had (and in some cases still have) the transformation economies. The aim of this article is to examine the technological trap and its impact on the economic growth. The most important question is: How the technological trap can be a burden for growth, especially for the countries in transition. The paper provides the definition of the technological trap, the hazards of the Necroeconomy and explains how the Necroeconomy can be a significant burden for growth and reason of the technological trap. Our aim is to provide some theoretical and practical examinations from above mentioned economic issues. The paper explains different sources of the technological trap and mostly is concentrated on the technological trap in transition economies. Keywords - Economic growth, long-run growth,technological trap, transition economies, Necroeconomy.