Concentrates on the exposure of an economy to external shocks. Considers various aspects of economic vulnerability and how these might be measured. Outlines the variables employed in the study and then derives an aggregated index of vulnerability from these variables, considering a number of alternative scaling methodologies. Analyses the results in terms of the links between vulnerability and physical characteristics such as country size, and the sensitivity of the results to altering key parameters. Makes conclusions on the relationship between economic vulnerability and inherent country characteristics, and the implications this has for policy formulation.

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