Scale economy or scale entropy? Country size and rate of economic growth, 1950-1977.

Uses data for 105 nations to assess the effects of country size on economic growth rate, 1950-1977. Contrary to conventional arguments, domestic market size has no independent effect on rate of economic growth. However, when market size is decomposed so that the effects of population size and per capita income are separated, population has a modest positive effect on growth rate, while per capita income has a substantial negative effect. Consistent with the scale entropy view, the negative income effect suggests that affluence may entail costs which slow economic growth.-from Author