The Economy of Small States
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.
Volume (Year): 94 (2004)
Issue (Month): 6 (November-December)
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