This week marks the first anniversary of the “ISET Khachapuri Index” in The Financial. During the last 12 months, our faithful readers have followed the ups and the downs of the index and learned many economics lessons in the process.
Another perspective on whether to build a new city or not: in some papers land scarcity is seen as a factor that stimulates urbanization and industrialization.
The large economies have each, in sequence, offered "models" that once seemed attractive to others but that eventually gave way to disillusionment. Small countries may have some answers.
A recent paper by Dani Rodrik has an interesting observation about Georgia. The paper itself estimates the productivity growth rates of manufacturing firms, based on a UNIDO dataset covering 72 countries.
The New York Times ran an article about Lazika, the planned city near Zugdidi, on the Black Sea coast. It’s not the only attempt to build a new city from the scratch in the South Caucasus, as Azerbaijan has similar plans.