What Is a Small State in a Globalizing Economy?

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Piret Tnurist

Abstract

Globalization delineates the definition of a "small state" from objective markers of size. After a brief review of previous definitions of small states, this article focuses on the growing influence of "smartness" or "innovation" determining the "size" of states in times of globalization. The influence of globalization through the most prevalent trends - the increasing openness of economies, the internationalization of technology, the emergence of global production networks and the growing influence of multinational corporations - is explored as this article tries to shed some light on the concept of "size" in the 21st century. In the course of an extensive literature review, this article reaches the conclusion that the economy structure, developmental level and geography (core-periphery relationships) play a decisive role in the real "size" and development of states.

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