Large-Scale Open Economies: Typology and Analysis

Authors

  • Алексей Владимирович Воронцовский St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation https://orcid.org/0000-0001-6473-1951
  • Елена Глебовна Ефимова St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation https://orcid.org/0000-0003-1948-6728

DOI:

https://doi.org/10.21638/11701/spbu05.2016.202

Abstract

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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Author Biographies

Алексей Владимирович Воронцовский, St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

Doсtor of Economic Sciences, Professor

Елена Глебовна Ефимова, St. Petersburg State University, 7–9, Universitetskaya nab., St. Petersburg, 199034, Russian Federation

Doсtor of Economic Sciences, Professor

References

Литература на русском языке

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References in Latin Alphabet

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Translation of references in Russian into English

Abel’ E., Bernanke B. Makroekonomika [Macroeconoimics] . 5th ed. St. Petersburg, Piter Publ., 2011. 768 p. (In Russian)

Vorontsovskii A. V., V’iunenko L. F. Postroenie traektorii razvitiia ekonomiki na osnove approksimatsii uslovii stokhasticheskikh modelei ekonomicheskogo rosta [Constructing of Economic Development Trajectories by Approximating Conditions of Stochastic Models of Economic Growth]. Vestnik of Saint-Petersburg University. Series 5. Economy, 2014, issue 3, pp. 123–147. (In Russian)

Modelirovanie ekonomicheskogo rosta v usloviiakh sovremennoi ekonomiki [Modelling of economic growth in the modern economy] . Ed. by A. V. Vorontsovskii. St. Petersburg, St. Petersb. Univ. Press, 2011. 284 p. (In Russian)

Aсemoglu D. Introduction to Modern Economic Growth. Princeton, Princeton University Press, 2009. 990 p.

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).

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).

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

Issue

Section

Macroeconomic research

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