This Selected Issues paper and Statistical Appendix for Netherlands Antilles examines the economic growth in Small Island Economies. The paper finds that the Small Island Economies as a group grew faster than the rest of the world during 1960–85. The paper analyzes whether Small Island Economies respond to the same set of growth determinants as other economies, and concludes that growth is determined by the same factors and macroeconomic policy choices. The paper presents possible economic challenges that Small Island Economies might face owing to their size.
B. Review of the Empirical Literature
C. Empirical Analysis of Growth Determinants in Small Island Economies
D. Concluding Remarks
1. Distribution of Growth Rates for Island and Non-IslandEconomies
1. Difference in PPP Per Capita Incomes Among Very Small, Small, and Large Countries in 1995
2. Annual Growth of PPP Per Capita Incomes Among Very Small, Small, and Large Countries between 1985 and 1995
3. Sources of Growth by Country Size
4. Sample Means of Island and Non-IslandEconomies, 1960-1985
. However, productivity growth in the large countries can be attributed to more than size. Based on a geographical decomposition, the paper finds that productivity growth rates range from over 4 percent in South Asia to -1 percent in sub-Saharan Africa, providing a strong indication of the importance of factors other than size. Unfortunately, the paper does not shed any light as to what other factors beside size might affect productivity, nor does it permit to differentiate the small economies into island economies or non-islandeconomies.
Sources of Growth