Growth and equity in microstates: Does size matter in development?

Abstract

This paper examines the phenomen of microstates and, in particular, their often exceptionally high per-capita levels of income. It suggests that the small size of a state, in terms of both area and population, may be economically advantageous. The special characteristics of microstates are defined and a case study of the Turkish Republic of North Cyprus is used to examine them further. Conclusions are drawn and, hopefully, discussion will be stimulated regarding the relatively unexplored field of microstates.