Click here for search results
Small states, small problems?, Volume 1
 
Author:Easterly, William; Kraay, Aart; Collection Title:Policy, Research working paper ; no WPS 2139
Date Stored:1999/09/14Document Date:1999/06/30
Document Type:Policy Research Working PaperLanguage:English
Major Sector:Public Administration, Law, and JusticeReport Number:WPS2139
Sub Sectors:Other Public Sector ManagementSubTopics:Environmental Economics & Policies; Achieving Shared Growth; Governance Indicators; Economic Theory & Research; Economic Conditions and Volatility; Inequality; Public Health Promotion; Fiscal & Monetary Policy
Volume No:1  

Summary: Small states have attracted a good deal of research. The authors test whether micro-states are any different from other states in income, growth, and volatility. They find that, controlling for location, smaller states are actually richer than other states in per capita GDP. This income advantage largely reflects a productivity advantage--evidence against the idea that micro-states are unable to exploit increasing rates of return to scale. Small states do not have different per capita growth rates, with or without controls. Their annual growth rates are more volatile, partly because of their greater volatility in responses to terms-of-trade shocks--to which they are exposed because of their greater openness pays off positively in growth. The authors do recommend that small states diversify their risk by opening up more to international capital markets, although the benefits of doing so are still unresolved in the literature. In general, they conclude, small states are nor different from large states and should receive the same policy advice large states do.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 41 pagesOfficial version*2.87 (approx.)
TextText version**
How To Order
Light-Weight Documents
Lighter (less MB) documents which may or may not be the final, official version
File TypeDescriptionFile Size (mb)
PDF 37 pagesWPS21390.13

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/GFPGFFD930