| Description |
1 online resource (xiii, 116 pages) : color illustrations |
| Series |
Directions in development. Countries and regions |
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Directions in development (Washington, D.C.). Countries and regions.
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| Contents |
Introduction -- What Is a Small Economy? -- In Search of Scale Economies with International Data -- Implications for Economic Outcomes -- Open and Nimble: How Small Economies Adapt to Their Economic Challenges -- Policy Implications -- Appendix A. Distribution of Labor Force Size in Latin America and the Caribbean |
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Front Cover -- Contents -- Acknowledgments -- About the Authors -- Abbreviations -- Chapter 1 Introduction -- Note -- Chapter 2 What Is a Small Economy? -- What Is a â#x80;#x9C;Smallâ#x80;#x9D; Economy? -- Differences in Economic Orientation among Small Economies in LAC -- Economic Size and Its Relationship with Growth Outcomes -- Notes -- References -- Chapter 3 In Search of Scale Economies with International Data -- Literature on Economies of Scale -- Economies of Scale in Trade Patterns -- Scale Economies in Spillovers from Foreign Direct Investment? |
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Evidence of Scale Economies in GovernmentNotes -- References -- Chapter 4 Implications for Economic Outcomes -- External Economic Volatility -- Higher Relative Costs of Natural Disasters -- Fiscal Challenges in the Context of Fixed Exchange Rates -- Low Savings Rates -- Notes -- References -- Chapter 5 Open and Nimble: How Small Economies Adapt to Their Economic Challenges -- Openness to Trade and Investment -- Nimbleness: Diversification Over Time -- Emigration and Remittances -- Notes -- References -- Chapter 6 Policy Implications |
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Economic Characteristics of Small EconomiesPolicy Solutions -- Concluding Thoughts -- Notes -- References -- Appendix A Distribution of Labor Force Size in Latin America and the Caribbean -- Figures -- Figure 2.1â#x80;#x82;Export Value Decomposition for Small Economies in Latin America and the Caribbean, 2014 -- Figure 2.2â#x80;#x82;Differing Long-Term Growth Trends in Small Economies in Latin America and the Caribbean, 1981â#x80;#x93;2013 -- Figure 2.3â#x80;#x82;LAC Labor Force Size in 2013 -- Figure 2.4â#x80;#x82;GDP per Capita PPP Levels in LAC, 2013 |
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Figure 2.5â#x80;#x82;Long-Run Growth Rates in LAC, 1970â#x80;#x93;2013Figure 3.1â#x80;#x82;Number of Export Product Lines, 1995â#x80;#x93;2013 -- Figure 3.2â#x80;#x82;Herfindahl-Hirschman Index, 1995â#x80;#x93;2013 -- Figure 3.3â#x80;#x82;Relationship between Size and Openness -- Figure 3.4â#x80;#x82;Relationship between Openness and Number of Export Lines -- Figure 3.5â#x80;#x82;Partial Correlation between Size and Number of Export Lines, Controlling for Openness -- Figure 3.6â#x80;#x82;Partial Correlation between Openness and Number of Export Lines, Controlling for Size -- Figure 3.7â#x80;#x82;Number of Export Markets, 1995â#x80;#x93;2013 |
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Figure 3.8â#x80;#x82;Herfindahl-Hirschman Index Export Markets, 1995â#x80;#x93;2013Figure 3.9â#x80;#x82;Share of Exports in Increasing Returns to Scale Products, 1995â#x80;#x93;2013 -- Figure 3.10â#x80;#x82;Backward Linkages Increase with Size -- Figure 3.11â#x80;#x82;Effects of Different Sectors on the Propensity to Form Backward Linkages -- Figure 3.12â#x80;#x82;Partial Correlation between Backward Linkages and Labor Force Size, Controlling for Average Years of Education Attained -- Figure 3.13â#x80;#x82;Partial Correlation between Backward Linkages and Average Years of Education Attained, Controlling for Labor Force Size |
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""Figure 3.14â#x80;#x82;Government Spending as a Share of GDP, 1990â#x80;#x93;2013"" |
| Summary |
Does economic size matter for economic development outcomes? If so are current policies adequately addressing the role of size in the development process? Using working age population as a proxy for country size, this publication systematically analyzes what makes small economies unique. Small economies are not necessarily prone to underdevelopment and in fact can achieve very high income levels. Small economies, however, do tend to be highly open to both international trade and foreign direct investment, have highly specialized export structures, and have large government expenditures relative to their Gross Domestic Product. The export structures of small economies are concentrated in a few products or services and in a small number of export destinations. In turn, this export concentration is associated with terms of trade volatility, which combined with high exposure to international trade, implies that small economies tend to face more volatility on average as external volatility permeates national economic life. Yet small economies tend to compensate for their export concentration by being nimble in the sense of being able to change their production and export structure relatively quickly over time. Moreover, limited territory plays a role in shaping how economies are affected by natural disasters, even when the probability of facing such disasters is not necessarily higher among small than among large economies. The combination of large governments with macroeconomic volatility seems to be associated with low national savings rates in small economies. This combination could be a challenge for long-term growth if productivity growth and foreign investment do not compensate for low domestic savings. The book finishes with some thoughts on how policy makers can respond to these issues through coordinated investments and regional integration efforts, as well as fiscal policy reforms aimed at both increasing public savings and conducting countercyclical fiscal policies |
| Bibliography |
Includes bibliographical references |
| Notes |
Resource, viewed December 20, 2017 |
| Subject |
States, Small -- Economic conditions.
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BUSINESS & ECONOMICS -- Industries -- General.
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States, Small -- Economic conditions
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| Form |
Electronic book
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| Author |
Lesniak, Justin T., author
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| LC no. |
2017448391 |
| ISBN |
9781464810435 |
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1464810435 |
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