Development of Small Countries in the Business Environment of the European Union

Tomaš, Rajko and Radović-Marković, Mirjana (2018) Development of Small Countries in the Business Environment of the European Union. Transylvanian Review of Administrative Sciences (53). pp. 84-106. ISSN 1842-2845

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Abstract

In this study, we examined whether small
countries, when joining the European Union and
transferring a part of their sovereignty to the EU
institutions, become economically stronger or
weaker. We have conducted our assessment
based on the index of relative concentration of
power (IRC), which was developed for the purpose of this analysis, modifying the Herfi ndahlHirschman Index. Our analysis has shown that in
the analyzed period between 2000 and 2015, the
relative economic power of small member states
of the EU grew stronger, while, at the same time,
the relative economic power of large countries
weakened. We started from the assumption that
small countries, prior to their entry into the European Union, have lower competitiveness due to
the relatively higher fi xed costs in the public and
private sector. Large single market of the European Union produces relatively stronger effect of
economies of scale for small countries compared
to large countries, which is why their relative
economic power grows faster than the relative
power of large countries.

Item Type:	Article
Additional Information:	COBISS.ID=512515170
Uncontrolled Keywords:	small countries, large countries, the European Union, business environment, development, index of the relative concentration of power (IRC)
Research Department:	Digital Economics
Depositing User:	Jelena Banovic
Date Deposited:	14 Feb 2019 14:26
Last Modified:	24 Aug 2020 08:48
URI:	http://35.240.28.64/id/eprint/1277
Author Links:	[error in script] No links available.

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