Openness, Specialisation and Vulnerability of the Nordic Countries

Kaitila VilleVirkola Tuomo

Abstract

In this paper we analyse to what extent the Nordic economies are vulnerable to external shocks. Specifically, we assess the conventional wisdom that the Nordic countries are small open economies that are significantly engaged in international trade, specialised in only few specific industries and, as a consequence, extremely dependent on the competiveness of their tradable sector and exposed to external shocks. To study this conventional wisdom, we employ a comprehensive set of indicators about trade openness, specialisation and vulnerability. While we do find that the Nordic countries are open economies, though not to an exceptional degree, we also find significant heterogeneity across these countries with respect to their vulnerability.

Information om publikationen

Serie
ETLA Raportit - Reports 21
Datum
27.03.2014
Nyckelord
International trade, Small open economy, Nordic countries, Specialisation, Vulnerability
ISSN
2323-2447, 2323-2455 (Pdf)
JEL
F14, F6, L00
Sidor
30
Språk
Engelska