The economic vulnerability of a (poor) country is the risk of this country seeing its development hampered by natural and external shocks. It is detrimental to development because it durably lowers economic growth and poverty
reduction. Vulnerability can be seen as the result of three components: (i) the size and frequency of the exogenous shocks, (ii) the exposure to shocks and (iii) the capacity to react to shocks, or the resilience. The resilience mainly depends on present policy, what is not the case of the two other components, which for these reasons can be considered as more structural.
Cariolle, J. et P. Guillaumont "A retrospective Economic Vulnerability Index: 2010 update" Ferdi, Note brève B17, mars 2011
Codes JEL : O11 , C82