THE POSITION OF SMALL POWERS IN THE WEST EUROPEAN NETWORK OF ECONOMIC RELATIONS*

Abstract

ABSTRACTThe purpose of the investigation is to explore, by using data on trade structures and multinational corporations, the extent to which the relatively homogeneous group of West European countries is characterized by the existence of dominance relations. The analysis indicates that smaller and not‐so‐rich West European nations tend to be systematically worse‐off, judged on the basis of the premises of the investigation, in the network of trade and investment relations. Furthermore the size dimensions, viz. Gross National Product, tend to have more explanatory power in relation to the position of smaller and not‐so‐rich nations than the level of development variable, viz. GNP/capita. The consequences of this state of affairs are for from clear because of the complexify and the multidimensionality of the dependent variable. In any case it appears to be important to make a distinction between mere growth of national economies ‐ which may be of parasitic nature as the case of Portugal illustrates – and development which implies a given degree of equality and autonomy in the economy concerned. Traditional theories concerning the position and external policy of small powers is of little help in describing and explaining these kinds of phenomena and consequently a reorientation in these theories is needed, if they are to be useful.