| As pointed out in this article, small island economies are diverse in their nature and in the challenges they face. A taxonomy of these economies is provided. The overview takes account of small island economies that are satellites of large countries as well as those which are independent nation states. Nevertheless, the emphasis here is on small island economies that are remote from central economies or disadvantaged in other ways. These include many island nations in the Pacific and elsewhere. Such economies suffer from diseconomies of scale in economic activity, are prone to imperfect market competition, and experience high transport and trading costs for a variety of reasons which are outlined. The gravitational pull of stronger central economies and... |
