Economic Growth Features in Developing Countries: the case of the Kyrgyz Republic

Abstract

Following the idea that economic growth differs from country to country, the thesis is addressed to contribute to the understanding of economic growth features in the Kyrgyz Republic from different perspectives. Thus, the first chapter focuses on the role of agricultural development and assesses the possibility to implement an agro-based cluster in the country. The second chapter applies the growth diagnostics methodology to identify country-specific constraints to growth; and the third chapter, based on the considerations of new institutional economics, is addressed to analyze the performance of central bank by applying the Taylor rule. Our findings, in the broader context, signal about the institutional weakness of the country. Thus, the results of the first chapter indicate the importance of the market-regulating institutions as for the successful agro-cluster implementation; the growth diagnostics approach identifies the weakness of the market-creating institutions as the most binding obstacle for economic growth in the country; lastly, the last part emphasizes the essential role of the market-stabilizing institutions and the role of central bank in particular.