Kuznets 1960

Kuznets, S. 1960. "Economic Growth of Small Nations" in Robinson, E.A.G. (eds) Economic Consequences of the Size of Nations (International Economic Association Conference Volumes. Palgrave Macmillan, London).

Kuznets posits that smaller countries typically have a higher proportion of foreign trade within their economies. This can be attributed to their more focused economic structures, which are often limited to a smaller variety of activities. The compact size of these nations enables them to more efficiently engage in both import substitution and export development compared to larger countries. Furthermore, transportation costs play a significant role in determining the advantages associated with various goods, making them an important consideration in the context of international trade. (p. 21)