Volltext: Very small countries: economic success against all odds

suggesting in finding ways to reduce the resulting disadvantages (provi- sion of only selected public goods, international outsourcing etc.). Some of the disadvantages listed in Table 5.1 have also been dis - cussed under the label «vulnerability» (e.g., Briguglio, 1995; Hintjens and Newitt, 1992). Table 5.1 aims to prove that the economic assessment 134 
The economics of sovereignty: «secrets of success» of very small countries Disadvantages • diseconomies of scale in public good provision (Alesina and Wacziarg, 1998; Kocher, 2000; Robinson, 1960) • small size of the domestic market (diseconomies of scale in private production) (Armstrong et al., 1993; Briguglio, 1995; Kuznets, 1960) • diseconomies of scale in research, development and technology (Briguglio, 1995; Jewkes, 1960; Vakil and Brahmananda, 1960) • less competition on internal markets (Armstrong et al. 1993; Gantner and Eibl, 1999) • not a large enough home market of considerable size to back export strategies • poor domestic resource base, both raw materials and knowledge (limited and undiver- sified) (Bhaduri et al., 1982; Kuznets, 1960; Waschkuhn, 1990) • narrow range of domestic output (Selwyn, 1975) • limited possibility of import-substitu tion (Selwyn, 1975) • export and import dependency (Kuznets, 1960) • unstable export prices may harm VSC economies considerably (MacBean and Nguyen, 1978) • high proportion of imports in domestic consumption • geographic export specialization (Kuznets, 1960) • vulnerability with regard to exogenous shocks (internal balancing mechanisms of shock consequences are limited) (Amstrong et al., 1998) • internationally «neglected» (little power to pursue (economic) interests internationally) • special problems (depending on geographic variables): high transport costs, limited ac- cess to international transport networks (highways, railways, harbors), geographic fractionalization etc. (Baldacchino and Milne, 2000) • elite connectivity (Gantner and Eibl, 1999; Geser, 
Table 5.1: Disadvantages and advantages of VSC


Sehr geehrte Benutzerin, sehr geehrter Benutzer,

aufgrund der aktuellen Entwicklungen in der Webtechnologie, die im Goobi viewer verwendet wird, unterstützt die Software den von Ihnen verwendeten Browser nicht mehr.

Bitte benutzen Sie einen der folgenden Browser, um diese Seite korrekt darstellen zu können.

Vielen Dank für Ihr Verständnis.