Abstract/Details

Economic size and long -term growth: An empirical analysis of the consequences of small economic size on investment, productivity and income growth


2003 2003

Other formats: Order a copy

Abstract (summary)

This research presents evidence supporting the hypothesis that small country size constitutes a burden for long-term economic growth. Based on statistical data for 130 countries (excluding transition economies and oil exporting countries) for the 1970–97 period, the evidence shows that, whether measured by population or GDP, small country size is associated with high export concentration, high market concentration of exports, and high share of primary products in total exports. The econometric evidence also suggests that export concentration leads to export instability. Moreover, using an accelerator model, the findings of this research suggest that export instability reduces income growth specifically by deterring private investment growth.

I also found a strong negative correlation between openness (measured by the ratio of taxes on trade to trade) and country size: the smaller the country, the less exposed the economy is to international competition. Furthermore, econometric evidence from panel data for the 1970–92 period indicates that trade opening negatively affects productivity and income growth.

These results challenge the notion of market-led specialization as an optimal policy choice for smaller countries, and point towards deliberate export diversification and careful trade policies, as opposed to single-minded liberalization programs.

Indexing (details)


Subject
Economics;
Manycountries;
Size;
Studies;
Hypotheses;
Economic growth
Classification
0501: Economics
Identifier / keyword
Social sciences, Economic size, Income growth, Investment, Long-term growth, Productivity, Small economic size
Title
Economic size and long -term growth: An empirical analysis of the consequences of small economic size on investment, productivity and income growth
Author
Isa, Pavel E.
Number of pages
153
Publication year
2003
Degree date
2003
School code
0118
Source
DAI-A 64/10, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
Advisor
Rao, J. Mohan
University/institution
University of Massachusetts Amherst
University location
United States -- Massachusetts
Degree
Ph.D.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
3110504
ProQuest document ID
305321400
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/305321400
Access the complete full text

You can get the full text of this document if it is part of your institution's ProQuest subscription.

Try one of the following:

  • Connect to ProQuest through your library network and search for the document from there.
  • Request the document from your library.
  • Go to the ProQuest login page and enter a ProQuest or My Research username / password.