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The Political Economy of Small European States: And Lessons for Scotland

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  • Keating, Michael
  • Harvey, Malcolm

Abstract

An independent Scotland would be a small European state. Small states may be at a disadvantage in world markets but can also adapt successfully. There are different modes of adaptation, notably the market-liberal mode and the social investment state. Either mode is dependent on internal institutions, social relationships and modes of policymaking. It is not possible to pick and choose items of different models since they have an internal coherence. The Scottish White Paper on independence supports the social investment state. Scotland has some, but not all, of the prerequisites for this so that independence would require internal adaptation.

Suggested Citation

  • Keating, Michael & Harvey, Malcolm, 2014. "The Political Economy of Small European States: And Lessons for Scotland," National Institute Economic Review, National Institute of Economic and Social Research, vol. 227, pages 54-66, February.
    • Handle: RePEc:cup:nierev:v:227:y:2014:i::p:r54-r66_15
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