Abstract:

Economic vulnerabilities have a significant affect on the economic growth and development process of especially developing countries. These countries are at a disadvantage compared to developed countries in the face of internal and external shocks. Among developing countries, countries that have institutions and policies are relatively less affected from vulnerabilities. In this study, based on the effects of economic economic vulnerabilities on country economies; the effects of the economic vulnerability index on economic development were tested using panel data methods (Common Correlated Estimators). The findings of DCCE-GMM estimator show that as economic vulnerabilities increases in selected emerging market economies, economic development will decrease. Accordingly, a 1% increase in the economic vulnerability index reduces the human development index by 0.04%.

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