Publication:
Open and Nimble: Finding Stable Growth in Small Economies, Summary

dc.contributor.author Lederman, Daniel
dc.contributor.author Lesniak, Justin T.
dc.date.accessioned 2017-03-27T17:41:18Z
dc.date.available 2017-03-27T17:41:18Z
dc.date.issued 2017-03-30
dc.description.abstract 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, Open and Nimble, 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. en
dc.identifier https://documents.worldbank.org/en/publication/documents-reports/documentdetail/479291490112172343/open-and-nimble-finding-stable-growth-in-small-economies-summary
dc.identifier.uri http://hdl.handle.net/10986/26304
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, DC
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo
dc.subject ECONOMIC GROWTH
dc.subject SMALL ECONOMIES
dc.subject ECONOMIC SIZE
dc.subject TRADE
dc.subject INVESTMENT
dc.subject FISCAL MANAGEMENT
dc.subject SAVINGS
dc.subject SMALL STATES
dc.subject ISLAND STATES
dc.subject NATURAL DISASTERS
dc.subject REMITTANCES
dc.subject VOLATILITY
dc.subject REGIONAL INTEGRATION
dc.subject FOREIGN DIRECT INVESTMENT
dc.subject FDI
dc.title Open and Nimble en
dc.title.subtitle Finding Stable Growth in Small Economies, Summary en
dc.type Summary en
dc.type Résumé fr
dc.type Resumen es
dspace.entity.type Publication
okr.crossref.title Open and Nimble: Finding Stable Growth in Small Economies, Summary
okr.date.disclosure 2017-03-30
okr.doctype Publications & Research
okr.doctype Publications & Research :: Publication
okr.identifier.doi 10.1596/26304
okr.identifier.internaldocumentum 211042
okr.identifier.report 113642
okr.imported true
okr.language.supported en
okr.topic International Economics and Trade :: Export Competitiveness
okr.topic International Economics and Trade :: Foreign Direct Investment
okr.topic International Economics and Trade :: Trade Policy
okr.topic International Economics and Trade :: Trade and Regional Integration
okr.topic Macroeconomics and Economic Growth :: Economic Conditions and Volatility
okr.topic Macroeconomics and Economic Growth :: Economic Growth
okr.topic Macroeconomics and Economic Growth :: Economic Theory & Research
relation.isAuthorOfPublication 2c812f70-403a-5905-88e4-bd90a5f31e96
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
English PDF
Size:
496.49 KB
Format:
Adobe Portable Document Format
Description:
Summary PDF
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description: