This is the first study to look at the trade effects on small states of the current global slowdown. Export industries in these countries have been affected at least as much as those of other developing countries. Given their reliance on trade, this means that the overall economic impact on small states may be greater than for other developing countries, all the more so for those countries exporting minerals and fuels, and 'luxury' goods and services, such as beef and tourism. The authors suggest a number of policy responses for governments of small states which may help to address the issues that arise.

About the Author

Massimiliano Cali is a Research Fellow at the Overseas Development Institute. His current research focuses on the relation between trade, development and growth, on the effects of migration on source countries, and on the determinants and implications of urbanisation in developing countries. Jane Kennan is a Research Officer at ODI. She specialises in the analysis of trade and related statistical data in order to support studies of trade policy.

Table of Contents

Summary 1. Introduction 2. How the Effects of the Global Financial Crisis Play Out Via Trade 2.1. Lower demand for imports 2.2. Worsening access to credit 2.3. Incipient and murky protectionism 3. Possible Trade Implications for Small States 3.1. Trade in goods 3.2. Trade in services 4. An Empirical Analysis of Trade Effects in Small States 4.1. Trade in goods 4.2. Trade in services 4.3. How do trade effects impact on the domestic economy? 5. Other Direct Channels of Transmission of the Crisis in Small States 5.1. Private capital flows 5.2. Remittances 5.3. Aid 6. Policy Implications 6.1. Long-term policies 6.2. Short-term policies 7. Conclusions Annex References Figures Tables

Reviews

'...this is an immensely important book; moreover, it is one into which those concerned have put much careful research and development- in many countries and cultures-and which is well written and easy to use.' - British Journal of Educational Technology, Volume 40 Issue 6, November 2009.