Small European Countries in Economic Internationalisation: An Economic Historical Perspective

Abstract

This paper addresses small state theories and characteristics. In economic theories foreign trade is of great interest since small states are more dependent than large ones on this trade. A special approach, formulated by Katzenstein, is shown to be time-bound. In the period from the 1930s to the 1980s small states' adaptation to the outside world to a great extent took the shape that Katzenstein discussed which among other things meant democratic corporatism. This conclusion is arrived at when a long-time perspective is applied. Small state characteristics are mostly of interest from the 19th century. Up to World War I inter-nationalisation was growing but after that it did not increase until the 1970s when a new internationalisation wave came. Especially in the second wave, which could also be called the globalisation wave, thoroughgoing adaptations of the small states were conspicuous and international organisations became essential.