This book challenges the common perception that significant regional disparities do not exist in small countries. As small developed countries become increasingly competitive and their economic structures resemble those of the large, a re-assessment of the regional consequences of these changes...

Using a gravity-type explanation of international trade flows at the industry level, it is shown that the pattern of comparative advantage in terms of sectoral export/import ratios in bilateral trade can be explained by relative income and relative per capita income. Total income of a country is...