Economic vulnerability and resilience of small states

The economic vulnerability of small states has, during the past two decades or so, been explored by many analysts. The awareness that small economic size almost necessarily leads to a high degree of economic openness and export concentration has led to the conclusion that such states are very exposed to factors outside their control, and they are therefore very susceptible to external shocks. The high degree of fluctuations in GDP and in export earnings registered by many small states is considered as one of the manifestations of such exposure.peer-reviewe