Kemp-Benedict, E. orcid.org/0000-0001-5794-7172, Drakes, C. and Laing, T.J. (2018) Export-Led Growth, Global Integration, and the External Balance of Small Island Developing States. Economies, 6 (2). 35. ISSN 2227-7099
Abstract
Small, open developing economies in general, and small island developing states (SIDS) in particular, have specific macroeconomic characteristics due both to their openness and their small size. Small size means they can never have fully independent capital-intensive domestic economies, so to raise incomes they must become thoroughly integrated into the global economy. The export sector thus becomes the engine of growth; it provides domestic income, which is spent on domestic goods and imports, driving overall economic output through a multiplier effect. Building on work within the Caribbean structuralist tradition, this paper presents a demand-driven model that includes capital accumulation and external debt. Given the limited data available for many small island states, the model explicitly represents the external macroeconomic balance. An aggregate representation of the national economy is derived formally from a two-sector model, following models of a petroleum exporting country developed Seers and Bruce and Girvan. The model's performance was evaluated against the historical performance of the Caribbean countries of Barbados, Jamaica and Trinidad and Tobago.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2018 by the authors. This is an open access article under the terms of the Creative Commons Attribution License (CC-BY 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | open economy; small island; export led growth; Caribbean; structuralist |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > School of Earth and Environment (Leeds) > Sustainability Research Institute (SRI) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 05 Dec 2024 12:55 |
Last Modified: | 05 Dec 2024 12:55 |
Status: | Published |
Publisher: | MDPI |
Identification Number: | 10.3390/economies6020035 |
Related URLs: | |
Sustainable Development Goals: | |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:220495 |