Are the Asia and Pacific Small States Different from Other Small States?

By Patrizia Tumbarello, Ezequiel Cabezon, Yiqun Wu

May 22, 2013

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Format: Chicago

Patrizia Tumbarello, Ezequiel Cabezon, and Yiqun Wu. Are the Asia and Pacific Small States Different from Other Small States?, (USA: International Monetary Fund, 2013) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The small states of the Asia and Pacific region face unique challenges in raising their growth potential and living standards relative to other small states due to their small populations, geographical isolation and dispersion, narrow export and production bases, exposure to shocks, and heavy reliance on aid. Higher fixed government costs, low access to credit by the private sector, and capacity constraints are also key challenges. The econometric analysis confirms that the Pacific Island Countries (PICs) have underperformed relative to their peers over the last 20 years. Although these countries often face more limited policy tools, policies do matter and can further help build resilience and raise potential growth, as evidenced in the recent business cycle. The Asia and Pacific small states should continue rebuilding buffers and improve the composition of public spending in order to foster inclusive growth. Regional solutions should also continue to be pursued.

Subject: Banking, Climate change, Environment, Government consumption, Income, International trade, National accounts, Population and demographics, Terms of trade

Keywords: Asia and Pacific, Asia-Pacific small state government, Climate change, Country authorities, Country information, ECCU country, Effective purchasing power, Government consumption, Growth, IMF staff calculation, Income, Micro state, Micro states, Pacific islands, Pacific region, Real GDP, Small states, Small states-Asia, Terms of trade, Volatility, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2013/123
Stock No:

WPIEA2013123
ISBN:

9781484339190
ISSN:

1018-5941

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