Economic vulnerability and economic resilience of small island developing states

Abstract

The presentation shows that small island developing states (SIDS) tend to be highly exposed to external economic shocks because of their inherent characteristics, mostly associated with trade openness. Many SIDS face additional economic disadvantages associated with high limited ability to enjoy the benefits of economies of scale. They also tend to face high international transport costs and uncertainties relating to the delivery of industrial supplies due to insularity and remoteness. Some small island states are also highly prone to natural disasters. In addition, many small island states are also archipelagos, made up of dispersed islands, leading to administrative difficulties.