The Size of Countries: Does it Matter?

Abstract

Borders are a man made institution, and as such their shape cannot be taken as part of the physical landscape. The size of countries is endogenous to politico economic forces. This paper discusses recent efforts by economists to study three related questions: What determines the evolution of the size of countries? Does size matter for economic success? Given the trend toward decentralization and of creation of supernational unions like the EU, is the meaning of national borders evolving?