Summary

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

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collection.link.129
https://openknowledge.worldbank.org/handle/10986/5993
collection.name.129
Stand alone books
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.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
okr.date.disclosure
2017-03-30
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Publication
okr.googlescholar.linkpresent
yes
okr.identifier.internaldocumentum
211042
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

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