IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

An Economic Vulnerability Index: Its Design and Use for International Development Policy

  • Patrick GUILLAUMONT

    ()

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

In response to the need expressed by the UN General Assembly, an economic vulnerability index (EVI) has been defined by the Committee for Development Policy. The present paper, which refers to this index, first examines how a structural economic vulnerability index can be designed for the low-income countries in particular. It recalls the conceptual and empirical grounds of the index, considers the structure of the present EVI, its sensitivity to methodological choices with respect to averaging, as well as related possible improvements, and briefly compares the levels and trends of EVI in various country groups, using a new database from a ‘retrospective EVI’. The paper examines how EVI can be used for international development policy, underlining two main purposes: first—the purpose for which EVI was initially designed—is the identification of the least developed countries (LDCs) that are allowed to receive some preferential treatment in aid and trade matters. EVI, in addition to income per capita and human capital, is one of the three complementary criteria a country needs to meet in order to be perceived as a LDC, and consequently it cannot be the sole criterion for countries wishing to avoid exiting the LDC list. And second, EVI is to be used, in addition to other traditional measures, as a criterion for aid allocation between developing countries. We argue that such an inclusion is legitimate for both reasons of effectiveness and equity. The two purposes are presented as complementary.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://publi.cerdi.org/ed/2009/2009.07.pdf
Download Restriction: no

Paper provided by CERDI in its series Working Papers with number 200907.

as
in new window

Length: 36
Date of creation: 2009
Date of revision:
Publication status: Published in , 2007, pages
Handle: RePEc:cdi:wpaper:1052
Contact details of provider: Postal:
65 Bd. F. Mitterrand, 63000 Clermont-Ferrand

Phone: (33-4) 73 17 74 00
Fax: (33-4) 73 17 74 28
Web page: http://cerdi.org/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Jean-Louis ARCAND & Patrick GUILLAUMONT & Sylviane GUILLAUMONT JEANNENEY, 1999. "Ethnicity, Communication and Growth," Working Papers 199901, CERDI.
  2. Lisa Chauvet & Patrick Guillaumont, 2009. "Aid, Volatility, and Growth Again: When Aid Volatility Matters and When it Does Not," Post-Print hal-00404654, HAL.
  3. Chris Milner & Thomas Weyman-Jones, 2003. "Relative National Efficiency and Country Size: Evidence for Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 1-14, February.
  4. Rachid LAAJAJ & Patrick GUILLAUMONT, 2006. "When instability increases the effectiveness of aid projects," Working Papers 200637, CERDI.
  5. Julie Subervie, 2011. "The impact of world price instability on agricultural supply according to several macroeconomic factors," Working Papers halshs-00564577, HAL.
  6. Garey Ramey & Valerie A. Ramey, 1994. "Cross-Country Evidence on the Link Between Volatility and Growth," NBER Working Papers 4959, National Bureau of Economic Research, Inc.
  7. Acemoglu, Daron & Johnson, Simon & Robinson, James A & Thaicharoen, Yunyong, 2002. "Institutional Causes, Macroeconomic Symptoms: Volatility, Crises and Growth," CEPR Discussion Papers 3575, C.E.P.R. Discussion Papers.
  8. Jacky Amprou & Patrick Guillaumont & Sylviane Guillaumont Jeanneney, 2007. "Aid Selectivity According to Augmented Criteria," The World Economy, Wiley Blackwell, vol. 30(5), pages 733-763, 05.
  9. Jean-François BRUN & Jaime MELO DE & Patrick GUILLAUMONT, 1998. "La distance abolie ? Critères et mesure de la mondialisation du commerce extérieur," Working Papers 199830, CERDI.
  10. G. K. Helleiner, 1996. "Why Small Countries Worry: Neglected Issues in Current Analyses of the Benefits and Costs for Small Countries of Integrating with Large Ones," The World Economy, Wiley Blackwell, vol. 19(6), pages 759-764, November.
  11. N/A, 1999. "The world economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 168(1), pages 3-3, April.
  12. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
  13. de Janvry, Alain & Sadoulet, Elisabeth, 2000. "Growth, Poverty, and Inequality in Latin America: A Causal Analysis, 1970-94," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(3), pages 267-87, September.
  14. Sylviane Guillaumont Jeanneney & Kangni Kpodar, 2011. "Financial Development, Financial Instability and Poverty," Working Papers halshs-00564573, HAL.
  15. Aizenman, Joshua & Marion, Nancy, 1999. "Volatility and Investment: Interpreting Evidence from Developing Countries," Economica, London School of Economics and Political Science, vol. 66(262), pages 157-79, May.
  16. Serven, Luis, 1997. "Irreversibility, Uncertainty and Private Investment: Analytical Issues and Some Lessons for Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(3), pages 229-68, Supplemen.
  17. Richard Breen & Cecilia García-Peñalosa, 2005. "Income Inequality and Macroeconomic Volatility: An Empirical Investigation," Review of Development Economics, Wiley Blackwell, vol. 9(3), pages 380-398, 08.
  18. Catherine A. Pattillo & Andrew Berg, 1998. "Are Currency Crises Predictable? A Test," IMF Working Papers 98/154, International Monetary Fund.
  19. Collier, Paul & Hoeffler, Anke, 2004. "Aid, policy and growth in post-conflict societies," European Economic Review, Elsevier, vol. 48(5), pages 1125-1145, October.
  20. Jean-Louis COMBES & Pascale COMBES MOTEL & Patrick GUILLAUMONT & Sylviane GUILLAUMONT JEANNENEY, 1999. "Ouverture sur l'extérieur et instabilité des taux de croissance," Working Papers 199927, CERDI.
  21. Guillaumont, Patrick & Korachai, Catherine, 2010. "When Unstable,Growth is Less Pro-Poor," Working Paper Series wp2010-77, World Institute for Development Economic Research (UNU-WIDER).
  22. Jean-François BRUN & Céline CARRERE & Jaime MELO DE & Patrick GUILLAUMONT, 2002. "Has Distance Died? Evidence from a Panel Gravity Model," Working Papers 200215, CERDI.
  23. Bulír, Ales & Hamann, A. Javier, 2008. "Volatility of Development Aid: From the Frying Pan into the Fire?," World Development, Elsevier, vol. 36(10), pages 2048-2066, October.
  24. Dawe, David, 1996. "A new look at the effects of export instability on investment and growth," World Development, Elsevier, vol. 24(12), pages 1905-1914, December.
  25. Guillaumont, Patrick & Korachais, Catherine & Subervie, Julie, 2008. "How Macroeconomic Instability Lowers Child Survival," Working Paper Series RP2008/51, World Institute for Development Economic Research (UNU-WIDER).
  26. Guillaumont, Patrick & Jeanneney, Sylviane Guillaumont & Brun, Jean-Francois, 1999. "How Instability Lowers African Growth," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 8(1), pages 87-107, March.
  27. Edward Miguel & Shanker Satyanath & Ernest Sergenti, 2004. "Economic Shocks and Civil Conflict: An Instrumental Variables Approach," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 725-753, August.
  28. A. K. Fosu, 2001. "Economic Fluctuations and Growth in Sub-Saharan Africa: The Importance of Import Instability," Journal of Development Studies, Taylor & Francis Journals, vol. 37(3), pages 71-85.
  29. Patrick GUILLAUMONT & Lisa CHAUVET, 1999. "Aid and Performance: A Reassessment," Working Papers 199910, CERDI.
  30. Collier, Paul & Dollar, David, 2000. "Can the world cut poverty in half ? how policy reform and effective aid can meet international development goals," Policy Research Working Paper Series 2403, The World Bank.
  31. Jean-Louis COMBES & Patrick GUILLAUMONT, 2000. "Commodity Price Volatility, Vulnerability and Development," Working Papers 200015, CERDI.
  32. Christopher L. Gilbert & Alexandra Tabova, 2005. "Can we link concessional debt service to commodity prices?," Department of Economics Working Papers 0508, Department of Economics, University of Trento, Italia.
  33. Rodrik, Dani, 1999. "Where Did All the Growth Go? External Shocks, Social Conflict, and Growth Collapses," Journal of Economic Growth, Springer, vol. 4(4), pages 385-412, December.
  34. Adams, Richard Jr., 2004. "Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty," World Development, Elsevier, vol. 32(12), pages 1989-2014, December.
  35. Collier, Paul & Dollar, David, 2002. "Aid allocation and poverty reduction," European Economic Review, Elsevier, vol. 46(8), pages 1475-1500, September.
  36. Patrick Guillaumont & Sylviane Guillaumont Jeanneney & Pierre Jacquet & Lisa Chauvet & Bertrand Savoye, 2007. "Attenuating through Aid the Vulnerability to Price Shocks," Post-Print hal-00293071, HAL.
  37. Ale Bulir & A. Javier Hamann, 2003. "Aid Volatility: An Empirical Assessment," IMF Staff Papers, Palgrave Macmillan, vol. 50(1), pages 4.
  38. N/A, 1999. "The world economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 170(1), pages 3-3, October.
  39. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
  40. Catherine ARAUJO BONJEAN & Jean-Louis COMBES & Pascale COMBES MOTEL, 1999. "The Economic Consequences of Export Instability in Developing Countries: A Survey," Working Papers 199926, CERDI.
  41. Bleaney, Michael & Fielding, David, 2002. "Exchange rate regimes, inflation and output volatility in developing countries," Journal of Development Economics, Elsevier, vol. 68(1), pages 233-245, June.
  42. Hnatkovska, Viktoria & Loayza, Norman, 2004. "Volatility and growth," Policy Research Working Paper Series 3184, The World Bank.
  43. Bleaney, Michael & Greenaway, David, 2001. "The impact of terms of trade and real exchange rate volatility on investment and growth in sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 65(2), pages 491-500, August.
  44. Glezakos, Constantine, 1984. "Export Instability and Economic Growth: Reply," Economic Development and Cultural Change, University of Chicago Press, vol. 32(3), pages 615-23, April.
  45. Gyimah-Brempong, Kwabena, 1991. "Export Instability and Economic Growth in Sub-Saharan Africa," Economic Development and Cultural Change, University of Chicago Press, vol. 39(4), pages 815-28, July.
  46. Mendoza, Enrique G., 1997. "Terms-of-trade uncertainty and economic growth," Journal of Development Economics, Elsevier, vol. 54(2), pages 323-356, December.
  47. Easterly, William & Kraay, Aart, 2000. "Small States, Small Problems? Income, Growth, and Volatility in Small States," World Development, Elsevier, vol. 28(11), pages 2013-2027, November.
  48. Reinhart, Carmen & Goldstein, Morris & Kaminsky, Graciela, 2000. "Assessing financial vulnerability, an early warning system for emerging markets: Introduction," MPRA Paper 13629, University Library of Munich, Germany.
  49. Lutz, Matthias, 1994. "The effects of volatility in the terms of trade on output growth: New evidence," World Development, Elsevier, vol. 22(12), pages 1959-1975, December.
  50. Alan Winters, L. & Martins, Pedro M. G., 2004. "When comparative advantage is not enough: business costs in small remote economies," World Trade Review, Cambridge University Press, vol. 3(03), pages 347-383, November.
  51. Briguglio, Lino, 1995. "Small island developing states and their economic vulnerabilities," World Development, Elsevier, vol. 23(9), pages 1615-1632, September.
  52. N/A, 1999. "The world economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 169(1), pages 3-3, July.
  53. Ghura, Dhaneshwar & Grennes, Thomas J., 1993. "The real exchange rate and macroeconomic performance in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 42(1), pages 155-174, October.
  54. McGillivray, Mark & Feeny, Simon, 2008. "Aid and Growth in Fragile States," Working Paper Series RP2008/03, World Institute for Development Economic Research (UNU-WIDER).
  55. Barry P. Bosworth & Susan M. Collins, 2003. "The Empirics of Growth: An Update," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 113-206.
  56. Paul Collier & P. Guillaumont & S. Guillaumont Jeanneney & Jan Willem Gunning, 1999. "Reforming Stabex," The World Economy, Wiley Blackwell, vol. 22(5), pages 669-682, 07.
  57. N/A, 1999. "The world economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 167(1), pages 3-3, January.
  58. Lisa CHAUVET & Patrick GUILLAUMONT, 2003. "Aid and Growth Revisited: Policy, Economic Vulnerability and Political Instability," Working Papers 200327, CERDI.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cdi:wpaper:1052. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vincent Mazenod)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.