Development and Stabilization in Small Open Economies: Theories and Evidence from Caribbean Experience

This book analyzes and explains the nature of the economies of small countries and territories, with case studies focusing on the Caribbean and Central America. It recommends economic policy tools for the management of these economies, demonstrating how they can best be employed in economies that live and breathe through international commerce. It also notes that the devaluation of the local currency makes a country worse off, and that economic windfalls such as the discovery of mineral resources seldom bring prosperity.

Format: Paperback / softback
Length: 428 pages
Publication date: 06 January 2023
Publisher: Taylor & Francis Ltd

This comprehensive book delves into the intricate nature of small countries and territories' economies, providing a thorough examination and explanation of their characteristics. It encompasses a comprehensive assessment of material prosperity in 41 diverse small open economies across the globe, with a special focus on the Caribbean and Central America. Through in-depth case studies, the book explores the recent economic development of these regions, shedding light on their challenges, opportunities, and strategies for growth.

Moreover, the volume offers valuable recommendations for economic policy management in these economies, showcasing how various tools can be effectively employed to navigate the complexities of international commerce. One notable observation is that the devaluation of a small nation's currency can have detrimental consequences, making it more vulnerable to economic shocks and reducing its competitiveness in the global market. Even when a currency maintains its value, it may hold little practical value if it is not readily convertible into US dollars, limiting its potential for trade and investment.

Furthermore, the book emphasizes that government policies play a crucial role in shaping international competitiveness and a country's growth prospects. While government interventions can have a significant impact, it is equally important to consider how governments utilize additional resources to enhance the quality of health and educational services, which are fundamental drivers of economic development. Economic windfalls, such as the discovery of mineral resources, may generate substantial economic value, but they often fail to bring about prosperity commensurate with their economic significance in the short run.

In conclusion, this book serves as a valuable resource for researchers and policy makers seeking to gain a deeper understanding of small countries and territories' economies. It offers insightful analysis, comprehensive assessments, and practical recommendations to help these economies thrive in the global marketplace. By examining the unique challenges and opportunities faced by these regions, the book provides valuable insights into the strategies and policies that can promote sustainable growth and prosperity.

Weight: 811g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032162294