Large-Scale Open Economies: Typology and Analysis
DOI:
https://doi.org/10.21638/11701/spbu05.2016.202Abstract
The article discusses the national economy’s identifi cation by means of scale or openness indicators and provides a detailed analysis of macroeconomic indicators for developed countries. It is noted that the size of the economy infl uences the choice of the applied theoretical studies and models of economic growth, as well as external markets. It classifi es the major world economies in accordance with GDP; export, import shares and foreign trade volumes. The features of the ratio of external openness and the size of the economy are found. It is proved that the assumption about the damping of oscillations of net outward direct foreign investment for large economies has not always been realized. The hypothesis about the dependence between macroeconomic indicators characterizing the size of the economy and indicators of economy openness within groups of larger countries has not been confi rmed. By means of the rank correlation methods we showed that the main criterium of economic openness is the ability to infl uence prices on commodity markets. Databases of the World Bank, International Trade Centre and Eurostat were used for the empirical confi rmation of hypotheses. It is “Greater” China, the USA and the EU that completely meet the proposed criteria of the large open economy. Refs 33. Tables 11. Figs 1.
Keywords:
large-scale open economy, foreign trade quota, criteria of economy openness, GDP, export, import, foreign direct investment, rank correlation methods
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References
Литература на русском языке
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Translation of references in Russian into English
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Alesina A., Spolaore E., Warcziarg R. Trade, Growth and the Size of Countries. Handbook of Economic Growth, vol. 1B. Eds P. Aghion, S. N. Durlauf. Amsterdam, Elsevier, 2005, pp. 1499–1542.
Alesina A., Wacziarg R. Openness Country Size and the Government. NBER Working Paper, no. 6024, 1997. Available at: http://www.nber.org/papers/w6024.pdf (accessed 05.11.2015).
Aghion P., Howitt P. Endogenous Growth Theory. Cambridge MA, MIT Press, 1998, pp. 365–402.
Aghion P., Howitt P. A Model of Growth Through Creative Destruction. Econometrica, 1992, no. 60, pp. 323–351.
Aghion P., Bloom N., Blundell R., Griffi t R., Howitt P. Competition and Innovation: An Inverted U Relationship. NBER. Working Paper, no. 9269, 2002. Available at: http://www.nber.org/papers/w9269.pdf (accessed 05.11.2015).
Aghion P., Harris C., Howitt P., Vickers J. Competition, Initiation, and Growth with Step-by-Step Innovation. Review of Economic Studies, 2001, no. 68, pp. 467–492.
Benavie A., Grinols E., Turnovsky S. J. Adjustment Costs and Investment in a Stochastic Endogenous Growth Model. Journal of Monetary Economics, 1996, vol. 38, pp. 77–100.
Dunning J. H. Theories and Paradigms of International Business Activity. The Selected Essays of John H. Dunning. Vol. I. Northampton (Massachusetts), Edward Elgar Publishing, 2002. 521 p.
Grinols E., Turnovsky S. J. Optimal Government Finance Policy and Exchange Rate Management in a Stochastically Growing Open Economy. Journal of International Money and Finance, 1996, vol. 15, no. 5, pp. 687–716.
Grossman G., Helpman E. Innovation and Growth in the Global Economy. Cambridge, MA, MIT Press, 1991. 359 p.
Jones Ch. Growth: With or Without Scale Effects. American Economic Review, 1999, no. 89, pp. 139–144.
Kuznets S. Modern Economic Growth and the Less Developed Countries Conference on Experience and Lessons of Economic Development in Taiwan. Taipei, Institute of Economics, Academia Sinica, 1981, pp. 57–66.
Kuznets S. Six Lectures on Economic Growth. The Free Press of Glencoe. New York, 1959. 122 p.
Lucas R. E. On the Mechanics of Economic Development. Journal of Monetary Economics, 1988, vol. 22, pp. 3–42.
Prachowny M. F. J. Small Open Economies: Their Structure And Policy Environment. Lexington (Massachusetts), Lexington Books, 1975. 140 p.
Ramsey F. A Mathematical Theory of Saving. Economic Journal, 1928, vol. 38, pp. 543–559.
Romer P. M. Increasing Returns and Long-Run Growth. Journal of Political Economy, 1986, vol. 94, pp. 1002–1037.
Romer P. M. Growth Based on Increasing Returns. Due to Specialization. American Economic Review, 1987, vol. 77, pp. 56–62.
Romer P. M. Endogenous Technological Changes. Journal of Political Economy, 1990, vol. 98, October, part 2. The Problem of Development: A Conference of the Institute for the Study of Free Enterprise Systems, pp. S71–S102.
Solow R. M. A Contribution to the Theory of Economic Growth. Quaterly Journal of Economic, 1956, vol. 70, February, pp. 65–94.
Swan T. W. Economic Growth and Capital Accumulation. Economic Record, 1956, vol. 32, pp. 334–361.
Trade Map. Trade statistics for international business development. Available at: http://www.trademap.org/Product_SelCountry_TS.aspx (accessed 25.12.2015).
Turnovsky S. J. On the Role of Government in a Stochastically Growing Open Economy. Journal of Economic Dynamics and Control, 1999, vol. 23, no. 5–6, pp. 873–908.
Turnovsky S. J. Methods of Macroeconomic Dynamics. 2nd ed. Cambridge (Massachusetts), MIT Press, 2000. 670 p.
Turnovsky S. J., Chattopadhyay P. Volatility and Growth in Developing Economies: Some Numerical Results and Empirical Evidence. Journal of International Economics, 2003, vol. 59, pp. 267–295.
Waelde K. Production technologies in stochastic continuous time models. Journal of Economic Dynamics & Control, 2011, pp. 616–622.
Eurostat [web-site]. Available at: http://appsso.eurostat.ec.europa.eu/nui/show.do (accessed 25.12.2015).
The World Bank [web-site]. Available at: http://data.worldbank.org/country/…; http://databank.worldbank.org/data/reports.aspx?source=2&Topic=1 (accessed 14.01.2016).
UnctadStat. United Nations Conference on Trade and Development [web-site]. Available at: http://unctadstat.unctad.org/CountryProfi le/en-GB/index.html (accessed 03.12. 2015).
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Published
2016-06-30
How to Cite
Воронцовский, А. В., & Ефимова, Е. Г. (2016). Large-Scale Open Economies: Typology and Analysis. St Petersburg University Journal of Economic Studies, (2), 027–051. https://doi.org/10.21638/11701/spbu05.2016.202
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Macroeconomic research
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Articles of the St Petersburg University Journal of Economic Studies are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.
