Financial crisis shock and country size


In small state economics, it is argued that small open economies are more volatile and more responsive to international shocks. However, small states also have a more flexible, faster and better capacity to adapt. In a case study on the Financial Crisis 2008/09, the following questions were statistically examined using multiple regression models with a worldwide data sample of 212 states (countries/independent territories): Did the vulnerability or adaptability of small states outweigh the vulnerability or adaptability of large states? Were smaller states actually affected more severely and perhaps even earlier? How strong/long was the global impact of the financial crisis shock? Which countries were particularly affected? Did the size of the state play a role and which other pre-crisis determinants (geographical, economic, political) were relevant?


Project duration: 2015–2022