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Openness, Specialisation and Vulnerability of the Nordic Countries

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  • Kaitila, Ville
  • Virkola, Tuomo

Abstract

In this paper we analyse to what extent the Nordic economies are vulnerable to external shocks. Specifically, we assess the conventional wisdom that the Nordic countries are small open economies that are significantly engaged in international trade, specialised in only few specific industries and, as a consequence, extremely dependent on the competiveness of their tradable sector and exposed to external shocks. To study this conventional wisdom, we employ a comprehensive set of indicators about trade openness, specialisation and vulnerability. While we do find that the Nordic countries are open economies, though not to an exceptional degree, we also find significant heterogeneity across these countries with respect to their vulnerability.

Suggested Citation

  • Kaitila, Ville & Virkola, Tuomo, 2014. "Openness, Specialisation and Vulnerability of the Nordic Countries," ETLA Reports 21, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:21
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    International trade; Small open economy; Nordic countries; Specialisation; Vulnerability;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F6 - International Economics - - Economic Impacts of Globalization
    • L00 - Industrial Organization - - General - - - General

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