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The Economy of Small States

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  • Luca Brandi

    (University of Macerata)

Abstract

This paper aims at verifying if territorial dimension is an important element for the economic success of a state and, if so, why and through which channels. The work proceeds to a careful assessment of the factors that can influence the economy of small states, in particular insularity, being landlocked, an offshore financial centre or a tax haven. With respect to the analysis of Easterly and Kraay (2000), controlling for financial specialisation there is no evidence that small states have higher productivity levels. Furthermore, financial openness may reveal to be a decisive factor for the economic success of small states.

Suggested Citation

  • Luca Brandi, 2004. "The Economy of Small States," Rivista di Politica Economica, SIPI Spa, vol. 94(6), pages 145-173, November-.
    • Handle: RePEc:rpo:ripoec:v:94:y:2004:i:6:p:145-173
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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