Small States, Small Problems? 1960-1995
DDI_WLD_1995_SSSP_v01_M

World Bank, Development Economics Research Group (DECRG)

2010-10-24
Metadata Editor
Small States, Small Problems? 1960-1995
SSSP 1960-1995
WLD_1995_SSSP_v01_M
William Easterly and Aart Kraay
2010-10-24
Metadata Editor
Small states have attracted a large amount of research. In this paper we test whether small states are any different from other states in terms of their income, growth, and volatility outcomes. We find that, controlling for location, small states have higher per capita GDP than other states. This income advantage is largely due to a productivity advantage, constituting evidence against the idea that small states suffer from an inability to exploit increasing returns to scale. Small states also do not have different per capita growth rates than other states. Small states do have greater volatility of annual growth rates, which is in part due to their greater volatility of terms of trade shocks. This terms of trade-based volatility is in turn due to small statesâ€™ greater openness. However, their greater openness on balance has a positive net payoff for growth. The one differential policy measure that might be relevant for small states is to further open up to international capital markets in order to better diversify risk, but the benefits of even that are still unresolved in the literature. We conclude that small states are no different from large states, and so should receive the same policy advice that large states do.
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The database contains data on 176 countries from all regions in the world.
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WLD_1995_SSSP_v01_M.NSDstat
176
38
Nesstar 200801
William Easterly and Aart Kraay
Variable risk98 (Institutional Investor Risk Ratings, 1998) has lots of missing data in panel so use RISK98 (value for 1998) in cross-section regressions
Country code
176
0
AGO
1
ARE
1
ARG
1
ARM
1
ATG
1
AUS
1
AUT
1
AZE
1
BDI
1
BEL
1
BEN
1
BFA
1
BGD
1
BGR
1
BHR
1
BHS
1
BLR
1
BLZ
1
BMU
1
BOL
1
BRA
1
BRB
1
BTN
1
BWA
1
CAF
1
CAN
1
CHE
1
CHL
1
CHN
1
CIV
1
CMR
1
COG
1
COL
1
COM
1
CPV
1
CRI
1
CSK
1
CYP
1
CZE
1
DDR
1
DEU
1
DJI
1
DMA
1
DNK
1
DOM
1
DZA
1
ECU
1
EGY
1
ESP
1
EST
1
ETH
1
FIN
1
FJI
1
FRA
1
GAB
1
GBR
1
GEO
1
GHA
1
GIN
1
GMB
1
GNB
1
GNQ
1
GRC
1
GRD
1
GTM
1
GUY
1
HKG
1
HND
1
HTI
1
HUN
1
IDN
1
IND
1
IRL
1
IRN
1
IRQ
1
ISL
1
ISR
1
ITA
1
JAM
1
JOR
1
JPN
1
KAZ
1
KEN
1
KGZ
1
KNA
1
KOR
1
KWT
1
LAO
1
LBN
1
LBR
1
LCA
1
LKA
1
LSO
1
LTU
1
LUX
1
LVA
1
MAR
1
MDA
1
MDG
1
MDV
1
MEX
1
MLI
1
MLT
1
MMR
1
MNG
1
MOZ
1
MRT
1
MUS
1
MWI
1
MYS
1
NAM
1
NER
1
NGA
1
NIC
1
NLD
1
NOR
1
NPL
1
NZL
1
OMN
1
PAK
1
PAN
1
PER
1
PHL
1
PNG
1
POL
1
PRI
1
PRT
1
PRY
1
QAT
1
REU
1
ROM
1
RUS
1
RWA
1
SAU
1
SDN
1
SEN
1
SGP
1
SLB
1
SLE
1
SLV
1
SOM
1
SUN
1
SUR
1
SVK
1
SVN
1
SWE
1
SWZ
1
SYC
1
SYR
1
TCD
1
TGO
1
THA
1
TJK
1
TKM
1
TON
1
TTO
1
TUN
1
TUR
1
TWN
1
TZA
1
UGA
1
UKR
1
URY
1
USA
1
UZB
1
VCT
1
VEN
1
VNM
1
VUT
1
WSM
1
YEM
1
YUG
1
ZAF
1
ZAR
1
ZMB
1
ZWE
1
Country name
176
0
Algeria
1
Angola
1
Antigua and Barbuda
1
Argentina
1
Armenia
1
Australia
1
Austria
1
Azerbaijan
1
Bahamas, The
1
Bahrain
1
Bangladesh
1
Barbados
1
Belarus
1
Belgium
1
Belize
1
Benin
1
Bermuda
1
Bhutan
1
Bolivia
1
Botswana
1
Brazil
1
Bulgaria
1
Burkina Faso
1
Burundi
1
Cameroon
1
Canada
1
Cape Verde
1
Central African Republic
1
Chad
1
Chile
1
China
1
Colombia
1
Comoros
1
Congo, Dem. Rep.
1
Congo, Rep.
1
Costa Rica
1
Cote d'Ivoire
1
Cyprus
1
Czech Republic
1
Denmark
1
Djibouti
1
Dominica
1
Dominican Republic
1
East Germany
1
Ecuador
1
Egypt, Arab Rep.
1
El Salvador
1
Equatorial Guinea
1
Estonia
1
Ethiopia
1
Fiji
1
Finland
1
Former Czechoslovakia
1
France
1
Gabon
1
Gambia, The
1
Georgia
1
Germany
1
Ghana
1
Greece
1
Grenada
1
Guatemala
1
Guinea
1
Guinea-Bissau
1
Guyana
1
Haiti
1
Honduras
1
Hong Kong, China
1
Hungary
1
Iceland
1
India
1
Indonesia
1
Iran, Islamic Rep.
1
Iraq
1
Ireland
1
Israel
1
Italy
1
Jamaica
1
Japan
1
Jordan
1
Kazakhstan
1
Kenya
1
Korea, Rep.
1
Kuwait
1
Kyrgyz Republic
1
Lao PDR
1
Latvia
1
Lebanon
1
Lesotho
1
Liberia
1
Lithuania
1
Luxembourg
1
Madagascar
1
Malawi
1
Malaysia
1
Maldives
1
Mali
1
Malta
1
Mauritania
1
Mauritius
1
Mexico
1
Moldova
1
Mongolia
1
Morocco
1
Mozambique
1
Myanmar
1
Namibia
1
Nepal
1
Netherlands
1
New Zealand
1
Nicaragua
1
Niger
1
Nigeria
1
Norway
1
Oman
1
Pakistan
1
Panama
1
Papua New Guinea
1
Paraguay
1
Peru
1
Philippines
1
Poland
1
Portugal
1
Puerto Rico
1
Qatar
1
Reunion
1
Romania
1
Russian Federation
1
Rwanda
1
Samoa
1
Saudi Arabia
1
Senegal
1
Seychelles
1
Sierra Leone
1
Singapore
1
Slovak Republic
1
Slovenia
1
Solomon Islands
1
Somalia
1
South Africa
1
Soviet Union
1
Spain
1
Sri Lanka
1
St. Kitts and Nevis
1
St. Lucia
1
St. Vincent and the Grenadines
1
Sudan
1
Suriname
1
Swaziland
1
Sweden
1
Switzerland
1
Syrian Arab Republic
1
Taiwan, China
1
Tajikistan
1
Tanzania
1
Thailand
1
Togo
1
Tonga
1
Trinidad and Tobago
1
Tunisia
1
Turkey
1
Turkmenistan
1
Uganda
1
Ukraine
1
United Arab Emirates
1
United Kingdom
1
United States
1
Uruguay
1
Uzbekistan
1
Vanuatu
1
Venezuela
1
Vietnam
1
Yemen, Rep.
1
Yugoslavia, FR (Serbia/Montenegro)
1
Zambia
1
Zimbabwe
1
Country sequential number
176
0
1
176
88.5
50.951
Real per capita GDP, average 1960-95
158
18
305.182
19765.037
4127.814
3976.052
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Real per capita GDP, 1960 (or first year for which data are available)
158
18
257
33946
3028.413
4434.95
Initial year is not always 1960; it is the first year for which data are available
175
1
41829.859
934543488
25895618.225
91104860.205
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Real per capita GDP growth, average 1960-95
155
21
-0.0655
0.0678
0.0159
0.0219
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Growth in population, average 1960-95
170
6
-0.00656
0.0653
0.0199
0.0121
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Investment to GDP at PPP, average 1960-95
151
25
0.0141
0.384
0.176
0.0862
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Real per capita GDP growth - Standard deviation
155
21
0.012
0.109
0.056
0.0215
Standard deviation is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Terms of trade shock
114
62
0.0047
0.0871
0.038
0.0215
Growth in export deflator minus growth in import deflator, weighted by current LCU shares of exports and imports in GDP
Unweighted terms of trade shock
114
62
0.00818
0.32
0.126
0.0727
Secondary school enrollment rates, average 1960-95
145
31
1.525
106.333
45.732
30.799
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Secondary school enrollment rates, 1960 (or first year for which data are availa
145
31
1
101
27.628
28.752
Initial year is not always 1960; it is the first year for which data are available
IMF indicator of capital account restrictions, average 1960-95
145
31
0
1
0.789
0.344
Trade openess, average 1960-95
158
18
0.14
3.296
0.739
0.437
Trade openess = (exports + imports)/GDP
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Financial openness, average 1960-95
135
41
-0.032
0.32
0.0621
0.0578
Financial openness = (financial account inflows + financial account outflows)/GDP
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Capital inflows (Inward FDI + inward portfolio + inward other)/GDP
136
40
-0.0298
0.182
0.0439
0.0344
Correlation of annual growth rates with OECD average annual growth rates
155
21
-0.328
0.846
0.247
0.268
Institutional Investor Risk Ratings, average 1960-95
107
69
6.497
94.494
41.62
25.039
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Institutional Investor Risk Ratings, 1998
128
48
5.7
92.6
42.308
24.18
High = good, lots of missing data in panel so use RISK98 (value for 1998) in cross-section regressions
Ethnolinguistic fractionalization
113
63
0
93
41.469
29.787
Sub-saharan Africa
176
0
0
No
129
1
Yes
47
Asia
176
0
0
No
148
1
Yes
28
Eastern Europe and Central Asia
176
0
0
No
128
1
Yes
48
Middle East and North Africa
176
0
0
No
159
1
Yes
17
Latin Americ and Caribbean
176
0
0
No
140
1
Yes
36
OECD
176
0
0
No
154
1
Yes
22
Oil Exporters, 1996 WDR Definition
176
0
0
No
160
1
Yes
16
Non-Oil Commodity Exporters, 1996 WDR Definition
176
0
0
No
137
1
Yes
39
Dummy for microstates (POPAV6095<1,000,000)
176
0
0
No
140
1
Yes
36
Inflation, average 1960-95
170
6
0.0206
13.101
0.849
2.173
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Proportion of population speaking english
161
15
0
1
0.0672
0.227
Proportion of population speaking a major european language (non English)
161
15
0
1.004
0.215
0.373
Latitude
169
7
-36.892
63.892
17.525
24.283
Total ODA from all sources, billions constant 1985 dollars, average 1960-95
146
30
0.466
2339.606
179.074
297.538
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
ODA/Real per capita GDP, average 1960-95
129
47
0.000177
0.192
0.0267
0.0324
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years
Real per capita GNP, average 1960-95
145
31
313.744
20217.625
4415.9
4335.096
Average is not always for the exact period 1960-1995; it is the average over all available years, min of 10 years