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Vulnerability, trade, financial flows and state failure in small island developing states

[journal article]

McGillivray, Mark; Naudé, Wim; Santos-Paulino, Amelia

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Abstract Small Island Developing States (SIDS) are very different to other developing countries. Relative to GDP they have the highest levels of foreign trade and aid receipts of all developing countries. Remittances from abroad are a far more important source of income for SIDS, and some depend very heavily on export revenues. The quality of governance varies tremendously among SIDS, they are over-represented among countries classified as fragile states and many are prone to state failure. These and other factors combine to make SIDS highly vulnerable to external economic shocks. Achieving development in SIDS is as a consequence an especially complex task that requires an understanding of the roles played by aid, trade, remittances and governance in these countries. This paper looks at these issues, along with providing various stylized facts about SIDS.
Classification International Relations, International Politics, Foreign Affairs, Development Policy; Political Economy
Free Keywords Small Island Developing States; vulnerability; foreign aid; remittances; D74; F2; F35; F43; 057
Document language English
Publication Year 2010
Page/Pages p. 815-827
Journal Journal of Development Studies, 46 (2010) 5
DOI http://dx.doi.org/10.1080/00220381003623822
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)