The economic disadvantages of island developing countries : problems of smallness, remoteness and economies of scale

Abstract

The economic structure of any developing country is influenced concurrently by special disadvantages and advantages. Economic disadvantages or handicaps, and competitive advantages of small island developing countries, relate to the main intrinsic characteristics of these countries: smallness, remoteness, and the acute outward-looking economic orientation (openness) which is generally observed among small island States. Concurrent disadvantages and advantages can influence economic structures of island countries in a varied manner. The combined influences can result in economic situations ranging from lasting poverty to steady prosperity. Economic disadvantages of small island countries can be analyzed in the light of the economic situations that they influence or contribute to create.