Description
This paper analyses the trends in the relative significance of small states in world trade, and looks at the reasons for their marginalisation. It advocates that dependence on primary products and increasing globalisation explain much of the trend in the declining significance of small states, but that there are four other key factors: the structure of the export trade; the unfavourable geographical positions of many small states; their lack of financial resources; the global trade regime under the WTO.
Contents
Abbreviations
Executive Summary
1. Introduction
2. Small States in World Trade: Volume, Growth Rate and Share
2.1 Trade in Merchandise Goods
2.2 Exports of Commercial Services
2.3 Total Export Trade (Merchandise plus Commercial Services)
2.4 Total Trade Transactions
3. Performance of Individual Countries
3.1 Long-term Trends
3.2 recent Performance of Individual Countries
4. Why is Marginalisation of Small States a Cause for Concern?
5. Marginalisation in Merchandise Export Trade: A Statistical Analysis
5.1 Understanding Marginalisation
5.2 A Simple Model of Marginalisation of Small States
5.3 Data
5.4 Empirical Estimation of the Model
6. Implications for Long-term Trade and Development of Small States
References
Appendices
Tables
Figures