COVID‐19 economic vulnerability and resilience indexes: Global evidence

Abstract

The study complements the extant literature by constructing Covid-19 economic vulnerability and resilience indexes using a global sample of 150 countries which are categorized into four principal regions, namely: Africa, Asia-Pacific and the Middle East, America and Europe.Seven variables are used for the vulnerability index and nine for the resilience index. Both regions and sampled countries are classified in terms of the two proposed and computed indexes. The classification of countries is also provided in terms of four scenarios pertaining to vulnerability and resilience characteristics, notably: low vulnerability-low resilience, high vulnerability-low resilience, high vulnerability-high resilience and low vulnerability-high resilience to respectively illustrate, sensitive, severe, asymptomatic and best cases. The findings are relevant to policy makers especially as it pertains to decision making in resources allocation in the fight against the global pandemic.

The Impact of the Pandemic in Human Trafficking Based on the First Two Years

“…A pandémia -lefoglalva a kormányok erőforrásait -is hozzájárult ahhoz, hogy a 2020-as évben számottevően visszaesett a megelőzésre és az áldozatok támogatására irányuló figyelem, amit az emberkereskedők jelentős mértékben kihasználtak." (Department of State, 2021;Asongu & Usman, 2020;Diop, Asongu & Nnanna, 2021). A mindennapjainkban jelentős szerepet betöltő digitális világ a pandémia hatására még elterjedtebbé vált.…”

The impact of the recovery and resilience facility on the Greek economy

“…Other studies construct composite indices to analyse the variability in output loss among countries. In Diop et al (2020), countries are ranked on the basis of vulnerability and resilience indices, which are constructed using a principal component analysis. The vulnerability index is based on indicators on the structure of the economies (such as international tourism receipts, oil and natural resources rents and personal remittances).…”

Relevance of the World Bank Group's Early Response to COVID-19: A Cross-Country Sector Analysis

“…Specifically, by assigning projects amounts of WBG support in response to Covid-19 to the same sector-specific themes underlying the constructed Need Score, we obtain a normalized measure of the relative intensities of WBG support to each sector in each country. 1 The method we use in estimating the overall vulnerability and need of each country during the Covid-19 crisis builds on existing approaches in the literature for constructing country-level vulnerability measures (Adian et al 2020, Apedo-Amah et al 2020, Diop et al 2021, Hu and Zhang 2021 and is similar to the methodology used in the construction of the World Bank's vulnerability score (Moelders 2020) and firm liquidity scores commonly produced by rating agencies. Since we are interested in assessing the relevance of development intervention, we normalize and aggregate the sector-specific vulnerability scores in a particular way that allows for a quantitative comparison with the amounts and types of provided support.…”

“…The construction of composite indices of economic vulnerability or resilience-such as our proposed Need Score-is not novel and several approaches have been proposed in the context of disaster response (Acharya et al 2020, Briguglio et al 2009, Fatemi et al 2017, Noy et al 2020). More specifically, in the case of Covid-19, it has been proposed the construction of an economic stimulus index which standardizes cross-country economic responses taken by governments (Elgin et al, 2021); a vulnerability index which examines the main factors that influence the resilience of economies to Covid-19 such as quality of health care, structure of the economy, and exposure and ability to respond to shocks (Davradakis et al 2020); a state and district level vulnerability index for India based on indicators across the socioeconomic, demographic, housing and hygiene, epidemiological, and health system domains (Acharya et al 2020); and vulnerability and resiliency indices using a global sample of 150 countries (Diop et al 2021). While most studies focus on the public sector and the macroeconomic effects of Covid-19, our methodology for deriving the Need Score expands on previous approaches by also incorporating private sector indicators, which allow us to capture the short and medium-term effects of the pandemic on firms (Adian et al 2020, Apedo-Amah et al 2020, Hu and Zhang 2021.…”