From the perspective of the state, one of the benefits of growing larger geographically is that bigness makes it more difficult for residents to emigrate or cross over borders to escape taxes.
In his writings on the origins of the "European miracle" that led to the continent's economic success, Ralph Raico has noted the importance of small states in Europe and the ability to easily emigrate from one political jurisdiction to another. This free movement has been essential in forming a free and open economy and society. Raico contrasts Europe with Imperial China where the state was more easily able to monopolize both natural and human resources through its large size.
In an earlier article at mises.org, we also explored how the creation of a larger number of (necessarily smaller) states creates more options for residents of the existing states, and thus increases the potential for fruitful migration and escape from overweening state power.
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