HAL will be down for maintenance from Friday, June 10 at 4pm through Monday, June 13 at 9am. More information
Skip to Main content Skip to Navigation
Journal articles

Country size, economic performance and volatility

Abstract : What are the relationships between country size, economic growth and business cycle volatility? To investigate this question, we developed an originalcountry-size index with principal component analysis. Traditional analysis usually equates country size with population. Our methodology enables to simultaneously consider several factors constitutive of country size: population,GDP and arable land. These additional variables allow us to capture different components of the country size and to control for more than a demographic effect. Using a panel data set of 163 countries for 1960–2007, we find, contrary to Rose (2006), that country size has a significant and negative correlation with economic performance. Our results for output volatility extend the negative and significant relationship found by Furceri and Karras (2007). In addition, we present differentiated results for small and large countries, OECD members, eurozone countries and the so-called BRIC countries.
Document type :
Journal articles
Complete list of metadata

Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Tuesday, October 26, 2021 - 11:39:32 AM
Last modification on : Monday, March 21, 2022 - 2:48:17 PM
Long-term archiving on: : Thursday, January 27, 2022 - 7:05:08 PM


Publisher files allowed on an open archive




Olfa Alouini, Paul Hubert. Country size, economic performance and volatility. Revue de l'OFCE, Presses de Sciences Po, 2019, pp.139 - 163. ⟨hal-03403618⟩



Record views


Files downloads