THE EUROPE'S MICROSTATES ROLE IN THE WORLD ECONOMY

Abstract

The article is devoted to the study of the role of European microstates in the modern world economy. Micro-states of Europe have been demonstrating the intensification of their foreign economic activity in recent decades. They deepen existing contacts with neighboring countries, establish new trade ties. Due to the deepening of integration with the world economic space, these countries ensure the growth and development of the most competitive sectors of the economy. Among the main objectives of this work can be considered consideration of the features of economic models of micro European countries, the role of these states in the modern world economy, their participation in world trade. The main indicators on the basis of which states belong to this group are outlined. They are the area of the territory and the population of the state. The micro-states of Europe include Andorra, Holy See, Liechtenstein, Malta, Monaco, and San Marino. The peculiarities of economic models of development of these states are highlighted. Almost all micro-states in Europe are implementing a market economy model with the active involvement of foreign investment. Only the Vatican's economic model is positioned as a planned non-profit one. The commodity and geographical structure of foreign trade of European microstates is analyzed. Andorra, Liechtenstein, Monaco maintain strong economic ties with neighboring countries France, Spain and Switzerland. Island micro-states cooperate mainly with EU countries. Holy See economic activity statistics are confidential. The commodity structure of imports is dominated by food, energy, cars, natural materials and resources. Instead, the structure of exports is dominated by financial, tourist services, knowledge-intensive non-material-intensive products. The role of tax legislation in promoting the economic development of European micro-states has been studied. Most of them are tax havens and have favorable tax legislation to attract foreign investment. The service sector and tourism occupy an important niche in the economy of micro-states in Europe. Further research is expected to consider the role of each microstate in the world economy, in particular, and the system of international relations in general.