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