The external sector vulnerability monitoring index (Λ): The case of Chinese and Asean-5 economies
Document Type
Article
Publication Date
1-1-2018
Abstract
This paper introduces an alternative indicator to evaluate the external sector behavior of a country or region. The objective of this indicator, titled “The External Sector Vulnerability Monitoring Index” (henceforth ESVM) (λ), is to offer policy-makers and researchers a new analytical tool to study the external sector trends and stages of any country from a global perspective. The ESVM-index (λ) is not intended to be a forecasting model. It is focused on showing the past and present economic situation in any country’s external sector performance. It can provide a general idea of the situation and evolution of the foreign sector performance of any country. Therefore, the application of the ESVM-index (λ) is based on the characteristics, conditions and historical moments that any country presents in its external sector development. ESVM-index (λ) acts as a simulator that allows the application of a series of different scenarios and phases of external sector performance of any country. In our case, we apply the external sector vulnerability monitoring index (λ) on the Chinese and ASEAN-5 economies.
Keywords
Trade liberalization, Openness, International Trade, ASEAN, China
Divisions
FacultyofEconomicsAdministration
Publication Title
Contemporary Economics
Volume
12
Issue
3
Publisher
University of Finance and Management in Warsaw