By Alvin G. Wint
Explores the demanding situations and possibilities linked to expanding competitiveness in small, constructing economies. in line with study performed within the Caribbean.
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Extra resources for Competitiveness in Small Developing Economies: Insights from the Caribbean
12. 13. 14. 15. Albania Armenia Botswana Central African Republic Republic of Congo Costa Rica Croatia Estonia Ireland Jamaica Jordan Kuwait Latvia Lebanon Lesotho 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Lithuania Macedonia Mauritania Moldova Mongolia Namibia New Zealand Nicaragua Norway Panama Papua New Guinea Singapore Slovenia Togo Uruguay Although per capita income has been used as a measure of the performance of small economies in several studies,27 there is debate about the utility of per capita income in this regard.
In this set of countries, the export variable has a negative sign, but is statistically insignificant. The service, political/country risk, infrastructure and education variables had the same signs as those hypothesized for small countries but, in the case of these larger countries, political/country risk and education were the statistically significant variables. Inflation had an unexpected positive sign, but was statistically insignificant. 986 a Standard errors are White-corrected for heteroskedasticity b Statistically significant A final statistical test was conducted to assess the extent to which “size mattered” in relation to income differences across countries.
Both of these industries place a significant premium on macrostability – economic, political and social – and on infrastructure development. Indeed, the fundamental competitive advantage of a small economy is the ability to be hospitable to the world, but simultaneously to take advantage of its small size by being nimble. Small economies do not have to integrate with the world. They can choose a path of autarky. But this is likely to lead to selfsufficient impoverishment, albeit with attendant low levels of risk in the sense 28 Competitiveness of Small Countries that the impoverishment will be stable and not subject to variation based on the vagaries of the world economy.
Competitiveness in Small Developing Economies: Insights from the Caribbean by Alvin G. Wint