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What would the economy of a sovereign/independent Scotland look like? Watch

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    I personally couldn't care less if Scotland got independence. If they want, I sat let them have it.

    But how would the economy of a sovereign Scotland be structured?

    There is North Sea oil and other fossil fuels, but this is obviously a finite resource. Besides, an advanced economy like Scotland couldn't live off oil akin to, say, Saudi Arabia or the UAE do. So North Sea oil is not a sufficient economic base, IMO.

    Tourism? Well, don't most tourists coming to the UK visit England as opposed to Scotland?

    Some Scottish nationalists cite financial services, but IMO I doubt Edinburgh or Glasgow could rival London as a major world financial centre.

    Manufacturing/secondary industries? Would Scotland be able to produce goods at an absolute or comparative advantage over others? It remains to be seen, as far as I am concerned.

    So then, how would a sovereign Scotland survive economically?
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    Who knows? If they joined Europe it would be decided for them.

    If not, depends on their tax and regulations, and who wants to invest.
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    It'd look like Ireland, probably.
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    It'd look like the drunk girl at a party. :ahee:
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    Export of haggis and kilts will tide them over the current harsh economic climate.
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    They'd have a better economy than they do now. They have a lot of resources and a very small population.
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    (Original post by Bateman)
    They'd have a better economy than they do now. They have a lot of resources and a very small population.
    And the workforce for this would come from where exactly?
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    (Original post by PoliceStory)
    And the workforce for this would come from where exactly?
    For what? Obviously they're not going to adapt an export orientated economy like china. :rolleyes:

    But if they do need the extra work force, they can get it from Poland
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    (Original post by rajandkwameali)
    Manufacturing/secondary industries? Would Scotland be able to produce goods at an absolute or comparative advantage over others? It remains to be seen, as far as I am concerned.

    So then, how would a sovereign Scotland survive economically?
    It's impossible for a country not to have a comparative advantage over another country.. seeing as it relates to opportunity cost..

    Like Ireland did, they would be able to attract huge foreign investment by setting much lower tax rates etc.
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    (Original post by andrew.P)
    It's impossible for a country not to have a comparative advantage over another country.. seeing as it relates to opportunity cost..

    Like Ireland did, they would be able to attract huge foreign investment by setting much lower tax rates etc.
    But the question is, which area would they have a comparative advantage in? And would this area be viable to focus on?

    And as for Ireland, another factor was that it just played catch-up with other EU economies. Scottish GDP per head is quite some way above the EU average. In the old 15 EU countries, Ireland often had among the lowest GDP per capita.
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    (Original post by Bateman)
    They'd have a better economy than they do now. They have a lot of resources and a very small population.
    Only a small number of advanced economies are well endowed with natural resources. Hong Kong and Singapore get by without large natural resources. Italy and Japan managed to become major world economies without them as well.

    A larger population also means more demand for goods/services, so it's not a curse as such. Note that countries with large populations often have large economies for this reason. England may always have a larger economy than Scotland since 50 million persons is a larger potential market than 5 million.
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    (Original post by rajandkwameali)
    Only a small number of advanced economies are well endowed with natural resources. Hong Kong and Singapore get by without large natural resources. Italy and Japan managed to become major world economies without them as well.

    A larger population also means more demand for goods/services, so it's not a curse as such. Note that countries with large populations often have large economies for this reason. England may always have a larger economy than Scotland since 50 million persons is a larger potential market than 5 million.


    A larger economy doesn't always mean a better economy. You have to look at GDP per capita.
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    (Original post by rajandkwameali)
    Ireland often had among the lowest GDP per capita.

    Yep.
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    Yes, had, which meant it had room to catch up.

    This is not the same with Scotland. Scottish GDP per head is only slightly lower than the UK's in general, and the UK's GDP per head has only fallen compared to other EU countries due to the depreciation of the pound sterling recently.
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    FFS i do not want to go around in circles.

    Scotland has a lot of resources and a smaller population, its GDP per head WILL go up, simply for the fact that they will get a higher proportion of the UK GDP because they own a lot of the resources.
 
 
 
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