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Governance and organizational structure of the inter-agency secretariat to the United Nations International Strategy for Disaster Risk Reduction (ISDR)

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An economy’s trade patterns create one channel for the cross-border transmission of shocks. While the average economy in our data had a current account very close to zero in 2007, the range is quite large. Trade openness, measured by the ratio of the sum of exports plus imports to GDP, captures the importance of trade. The average in our data is 98% of GDP, but the standard deviation of 66 percentage points implies a wide distribution. Finally, a country’s natural endowment may play a role in its macroeconomic performance. Of the 46 economies in our sample, 8 are known as commodity exporters, whether of oil.

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