Economic Vulnerability Research Articles

The role of Nigeria in the regional integration process in west Africa (1975 - 2023): Case study of Ecowas

This paper examines Nigeria's role in the regional integration process in West Africa through the Economic Community of West African States (ECOWAS) from 1975 to 2023. Nigeria's significant economic, political, and military influence in the region has positioned it as a key player in ECOWAS. This study explores Nigeria's contributions, challenges, and the impact of its policies on regional integration. Through a comprehensive analysis of historical and contemporary data, this paper provides insights into Nigeria's leadership and its implications for regional stability and development. The findings from the study revealed Nigeria's pivotal role in the regional integration process in West Africa through ECOWAS. Nigeria's economic strength, political leadership, and security contributions have been instrumental in shaping the trajectory of ECOWAS. The country's efforts in promoting economic integration, mediating conflicts, and supporting peacekeeping missions have significantly contributed to regional stability and development. However, the analysis also highlights several challenges that have impacted Nigeria's role. Economic vulnerabilities, domestic political instability, and regional rivalries have occasionally hindered Nigeria's ability to lead effectively. Addressing these challenges is crucial for Nigeria to sustain its leadership role and for ECOWAS to achieve its integration objectives.

Food purchase and consumption behavior during the COVID-19 pandemic lockdown in Bangladesh: association between sociodemographic composition

BackgroundBangladesh suffered a severe COVID-19 wave from June to August 2021, which forced the government to impose emergency nationwide lockdown measures for three months with discontinuities. The sudden lockdown strongly affected the dietary preferences, financial circumstances, and social interactions of citizens.MethodsIn this comprehensive study, we collected sociodemographic information as well as data on food purchase and consumption behaviors from 1,350 adults in Bangladesh during the weeks of enforced confinement. The association between the sociodemographic factors (viz., gender, age, education status, income, occupation, and household size) and food purchase and consumption behaviors were determined by conducting bivariate and multivariate logistic regression models reporting as odds ratios.ResultsThe descriptive result reveals that 49.63% of the participants experienced wage reductions, with many people enduring reductions of up to 75%; 12.22% lost their jobs. Besides, a decline in the frequency of shopping was observed by 35.04%; and 24.52% avoided outdoor shopping during the pandemic period. Additionally, 28.74% of participants purchased less overall, while 19.48% purchased significantly fewer items per trip compared to the pre-pandemic period. The multivariate analysis shows a prominent increase in online grocery shopping (OR: 4.03, 95% CI: 2.38–6.83, p < 0.001) and meal delivery services (OR = 5.19, 95% CI = 3.21–7.17, p < 0.001) among higher educated individuals compared to the individuals having no institutional education. The personnel having formal jobs purchased 2.34 times more from online grocery sites (95% CI = 0.34–4.08, p = 0.003) compared to the unemployed one. In contrast, a notable increase in panic buying and stockpiling was observed, driven by scarcity and escalating prices of essential food items. The frequency of meals with families, active engagement in meal preparation, and the exploration of novel recipes also increased notably.ConclusionsThe consumption of takeaway food and inter-meal snacks increased significantly with the education level of individuals. These findings highlighted that a prolonged pandemic could magnify economic vulnerability in Bangladesh.

From Critical Raw Materials to Circular Raw Materials.

This perspective addresses the key challenge of advancing the use of Critical Raw Materials (CRMs) and proposes a transition towards circular raw material management. In the context of our current economy, the unsustainable consumption, environmental degradation, geopolitical risks, and economic vulnerabilities associated with CRMs highlight the limitations in ensuring long-term CRM availability, emphasizing the environmental, social, and economic implications. In response, this perspective underlines a multifaceted technological approach to mitigate CRM criticality, focusing on reducing CRM use, substituting CRMs with less critical materials, and enhancing recovery and recycling processes, with Design for Circularity as the most impactful solution. The latter advocates for a paradigm shift in product design and material utilization, emphasizing principles like modular design, product life extension, and the transition from product ownership to service models. Such a holistic approach is not only crucial for sustainable CRM management, but is also key to fostering a resilient and low-carbon economy.

The impact of rural health insurance on vulnerability to chronic poverty among rural residents in China: analysis using Probit and IVprobit models

IntroductionPoverty is a global problem, and combating it is a major governance issue worldwide. In China, poverty management efforts have shifted from eliminating absolute poverty to managing relative poverty. One of the most important tasks in managing relative poverty in the post-poverty reduction era is to prevent recurring poverty due to illness. Rural health insurance is an important method of preventing and mitigating disease risk and a key part of China’s poverty reduction policy, including among rural residents. However, the mechanism by which basic health insurance alleviates vulnerability to poverty, the causal effect of rural health insurance on vulnerability to poverty, and differences based on having a second health insurance policy and by age and income have not been sufficiently explored. Therefore, this study examined the impact of rural health insurance on vulnerability to long-term poverty among rural residents in China. In addition, this study evaluated the impact of having a second health insurance policy and differences in the effects of rural health insurance by age and income.MethodsThis study used data from the 2014, 2016, 2018, and 2020 China Family Panel Studies. Household-related characteristics, such as finance, education, and healthcare, were retrieved from the household database; while data on healthcare expenditures, healthcare insurance, and personal-related characteristics were retrieved from the adult database. Robustness tests were conducted with Probit models, and endogeneity tests were conducted with IVprobit models.ResultsVulnerability to poverty was significantly lower among residents with rural health insurance than those without any health insurance coverage, and this difference was observed across age and income groups. These findings were consistently robust and significant after controlling for endogeneity, considering sample selectivity, and eliminating measurement bias in the core variables.ConclusionThe findings indicate that rural health insurance is an important tool for poverty alleviation. The current results could effectively reduce the economic vulnerability of rural households facing health risks, ensuring broader economic security. Moreover, these findings provide policy references for managing relative poverty in China.

Using Spatial Literacy for Disaster Management in Coastal Communities of Small Island Developing States (SIDS): A Case Study from Lavongai, Papua New Guinea

This study investigates the use of participatory geographic information systems (PGIS) for hazard assessment in small island developing states (SIDS), with a focus on spatial literacy and community-based disaster management. By partnering with the Lavongai community on Papua New Guinea, this research aimed to empower community members through skill development in geodata processing. The program leveraged local knowledge and the global positioning system to create participatory maps, enhancing both community capacity and researcher data quality. Workshops and focus group discussions (FGDs) were conducted to assess the community’s understanding of spatial concepts related to disaster risks. The core objective was a preliminary assessment of the community’s social and economic vulnerability to coastal disasters, using household data and GIS analysis. The results showed varied vulnerability levels within the community, highlighting the need for targeted disaster mitigation training and nature-based solutions. High-resolution satellite imagery and a simple bathtub model simulated sea level rise, identifying land-uses at risk. The program concluded with a community presentation of thematic maps, fostering collaboration and transparency. Future projects will address environmental challenges identified by local leaders and prioritize skill development, social data collection, and water resource mapping.

Estimating the economic vulnerability of 2020–2099 storm flooding with sea level rise on Coastal Virginia

Estimating the economic impact of flooding is an essential element of flood risk management. Policy interventions to mitigate the impact of flooding must be balanced against the financial and economic costs of flooding. Using projections of sea level rise for 2040, 2060, and 2080 and estimates of flooding damage that are equaled or exceeded 10-, 50-, 100-, and 500-year period, we investigate the financial costs of flooding across eight planning districts in Coastal Virginia. We briefly discuss the methodology to estimate the average annualized loss (AAL) given discrete events and likelihoods and how these AALs flow into the estimation of the net present value of flooding in Coastal Virginia. The Hampton Roads metropolitan area accounts for approximately 80.7% of estimated nominal losses currently, rising to 88.1% by 2080 due to sea level rise. This vulnerability is linked to poorly planned development, population growth, ground subsidence, and economic inequities. The present value of unmitigated flooding ranges from $20.0 billion to $58.7 billion in 2021 dollars, depending on the discount rate. Discounted economic impacts for unmitigated sea level rise could reach $82.9 billion for Coastal Virginia this century. The concentration of costs in Hampton Roads, which produces 20% of Virginia's GDP, underscores the need for targeted economic and security policies.

Synergizing autothermal reforming hydrogen production and carbon dioxide electrolysis: Enhancing the competitiveness of blue hydrogen in sustainable energy systems

With the global energy paradigm shifting towards renewable and sustainable systems, hydrogen is increasingly recognized as a promising energy carrier. In this transition, blue hydrogen is often considered a bridge solution to green hydrogen due to its economic vulnerability to carbon costs and environmental regulations related to life-cycle emissions. To expand the role of blue hydrogen, it is essential to enhance hydrogen yield, reduce production costs, and minimize greenhouse gas emissions during the production phase. This study proposes an integrated process for blue hydrogen production and CO2 electrolysis to enhance the competitiveness of blue hydrogen in sustainable energy systems. The focus of this study was to integrate autothermal reforming hydrogen production with solid oxide CO2 electrolysis and to determine the optimal configuration and operating conditions of the integrated process. The proposed process demonstrated superior performance in terms of energy efficiency, production cost, and environmental impact compared with conventional blue hydrogen production. Furthermore, considering the intermittency of renewable electricity and the uncertainties in CO2 electrolysis technology, the industrial feasibility of the proposed process was validated. The integration of autothermal reforming blue hydrogen production and CO2 electrolysis has four clear advantages: (i) the costly air separation and carbon capture units, which pose significant financial burdens in autothermal reforming blue hydrogen production, can be eliminated; (ii) the downstream separation, which is indispensable in a standalone CO2 electrolysis system, can be removed; (iii) utilization pathways for captured CO2 from blue hydrogen production have been proposed; and (iv) guidelines have been provided for the industrial utilization of CO2 electrolysis.

Veteran suicide thoughts and attempts during the transition from military service to civilian life: Qualitative insights

A rapidly growing literature highlights a critical need for targeted suicide prevention and risk mitigation strategies for veterans navigating the military-to-civilian transition. Although various risk correlates of suicidal thoughts and behavior among transitioning veterans have been identified, how and why these correlates occur and interact to affect suicidality remains unclear. Guided by the 3 Step Theory of Suicide, 10 recently discharged United States military veterans with a history of post-discharge suicide thoughts, urges, or behaviors completed interviews on the military-to-civilian transition and suicidal thoughts and behaviors occurring during this time. Thematic analysis highlighted an overarching theme of transition whiplash comprising four subthemes: unpreparedness, economic vulnerability, identity disruption, and social alienation. Veterans’ recommendations for improving suicide-prevention efforts included providing a primary contact to provide personalized support and guidance throughout transition and increasing accessibility of peer support. Results provide nuanced insight into experiences that may underlie suicide risk during the military-to-civilian transition.

All (economic) politics is local: Voting responses to localized price shocks during the great recession

AbstractThe connection between individual and macroeconomic conditions and voting behavior is well‐established. We contribute to the less resolved “spatial gap” in the literature that centers on how the localized economic conditions of where voters live influence their likelihood to vote. We test how space mediates the tension between voter mobilization and withdrawal in the face of economic shocks. We consider a scenario, the Great Recession, where economic shocks were quite localized and sudden, and compile an extensive dataset of all registered voters in the four‐county Tampa metropolitan area between 2006 and 2015. Using sales prices and property characteristics from the tax assessor rolls, we estimate a neighborhood‐level shock to housing values induced by the Great Recession. Results show that when we do not account for local neighborhood variation, the Great Recession is associated with a significant decrease in voter turnout. However, when we account for localized economic shocks, we find that residents in neighborhoods with negative price shocks were more likely to vote after the Recession, especially in non‐local elections. In addition, the propensity to vote increases with the size of the negative price shock. There is some evidence that variation at the neighborhood level matters more than voter‐level heterogeneity. The positive voting response is most profound in predominantly Black neighborhoods, and, to a lesser extent, in predominantly Hispanic and the lowest income neighborhoods. Increases in the propensity to vote are robust to models controlling for baseline economic vulnerabilities, such as localized unemployment, the weakness of the local housing market and exposure to sectors hit hardest by the Recession. The results indicate that dramatic and sudden changes in localized economic conditions can drive voting behavior, and in ways that are distinct from macroeconomic drivers. In addition, the housing asset channel appears to be a powerful one, which can induce significant voting responses at the national level apart from other localized economic drivers, especially among homeowners.

Transactional sex and its associated factors among gay, bisexual and other men who have sex with men in Nepal.

Background Transactional sex, which involves the exchange of sex for money, goods or other items of value, has been associated with adverse health outcomes, such as HIV and other sexually transmitted infections, mental health challenges, and substance use. Although transactional sex has been extensively studied globally among cisgender and transgender women, there is a lack of comprehensive understanding regarding its prevalence and correlates among gay, bisexual and other men who have sex with men (GBMSM), particularly in Nepal. Thus, this study aimed to examine the prevalence of transactional sex and its associated factors among GBMSM in Nepal. Methods A cross-sectional survey was conducted among GBMSM in Kathmandu Valley, Nepal, between October and December 2022 (N =250). We collected information on participants' sociodemographic characteristics, sexual and other behavioural characteristics, and their engagement in transactional sex. Bivariate and multivariate logistic regression analyses were performed to determine the factors associated with transactional sex. Results The average age of participants was 27.5years (s.d. 8.9). Overall, 16.4% reported engaging in transactional sex within the past 6months. Participants with more financial dependants (aOR: 1.2, 95% CI: 1.0-1.5) and those who had experienced police detention (aOR: 4.8, 95% CI: 1.1-19.6) were more likely to engage in transactional sex. In contrast, GBMSM who reported engaging in condomless sex were less likely to engage in transactional sex (aOR: 0.02, 95% CI: 0.06-0.1). Conclusions The study findings underscore a noteworthy prevalence of transactional sex and associated socioeconomic and behavioural factors among GBMSM in Nepal. These results underscore the need for targeted interventions addressing both economic vulnerabilities and legal interactions to reduce transactional sex and its associated risks in this high-risk group.

Intimate Partner Violence Among Adolescent Mothers Living With and Without HIV: A Pre- and During–COVID-19 South African Cohort Analysis

PurposeAdolescent mothers face heightened economic and social vulnerabilities, which can place them at increased risk of intimate partner violence (IPV), prepandemic, and during COVID-19. However, few studies examine this population, and even less disaggregate findings by HIV status. MethodsWe analyzed data from 834 South African adolescent mothers, 35% living with HIV (LHIV), who reported on physical, psychological, and sexual IPV exposure at two interviews: 2018-2019 (prepandemic) and 2021-2022 (during COVID-19). We estimated lifetime prevalence of IPV, disaggregating by HIV status. We used inverse weighted probability multivariate mixed-effects logistic regression to examine changes in IPV between the two periods and if changes in IPV differed by HIV status. ResultsA quarter of adolescent mothers had experienced any IPV during COVID-19, quadruple prepandemic levels (24.7% vs. 6.0%). The increase was driven by surges in physical (+15.7%) and psychological (+11.2%) IPV. In both periods, psychosocial and physical IPV were the most prevalent forms and the most common combination among those who had experienced multiple forms of IPV. Exposure to any IPV was significantly more prevalent among those LHIV compared to those without HIV, prepandemic (9.5% vs. 4.1%, p = .026) and during COVID-19 (31.8% vs. 20.6%, p < .001). Adjusted models revealed an 18.2% significant increase in the average predicted probability of reporting IPV during COVID-19 compared to prepandemic, with no differential effect by HIV status. DiscussionAdolescent mothers experienced a significantly higher burden of IPV during COVID-19 than prepandemic, with those LHIV experiencing the highest level. Initiatives to reduce IPV need to reach adolescent mothers, particularly those living with HIV.

An assessment of economic loss associated with cataract vision impairment for sustainable development in Borno state, Nigeria

The number of affected people with preventable vision impairment in Borno state is increasing at an alarming rate. Statistics have shown that more than 55 % causes of preventable blindness in the state is cataracts [10]. Nevertheless, ensuring inclusive eye health care is important to achieving Sustainable Development Goals (SDGs). Thus, this study examines the direct and indirect societal impacts of the economic loss associated with cataract vision impairment in Borno state. Descriptive statistical method was used to analyze 239 surveyed respondents. The results revealed that about 62.1 % of surveyed participants were with cataract vision impairment and 55.4 % of the respondents were male. The study recommends that policymakers implement targeted intervention strategies to mitigate economic vulnerabilities and productivity loss connected to cataract vision impairment so as to accelerate the achievement of sustainable development in the state.

The Impact of Unmet Healthcare Needs on the Perceived Health Status of Older Europeans During COVID-19.

To examine how unmet healthcare needs and the exposure to the pandemic impacted self-reported health (SRH) among individuals aged 50 and above. We use data from two waves of the Survey of Health, Ageing and Retirement in Europe (SHARE) Corona Survey collected in 2020 and 2021 in 27 European countries and Israel (N = 42,854). Three dimensions of barriers to healthcare access were investigated: healthcare forgone, postponed, and denied. Mixed-effects logistic regression analysis was employed to explore SRH deterioration during the pandemic. Findings indicate that unmet healthcare needs decreased throughout the pandemic but significantly contributed to the worsening of SRH among older adults. Mild or severe exposure to the pandemic heightened the likelihood of reporting deteriorated SRH. Additionally, the pandemic disproportionately affected females, the oldest-old, and those living alone or facing economic vulnerability. To mitigate the adverse effects on the health status of older adults, policymakers are strongly advised to prioritize addressing the healthcare needs of those who have been disproportionately affected by the pandemic.

Exploring gender-specific mental health status and socioeconomic impacts of COVID-19 pandemic on slum dwellers in Khulna City corporation, Bangladesh

BackgroundCOVID-19 has devastated every aspect of life worldwide, where slum dwellers are particularly vulnerable due to persistent inequities. This study aims to explore the socioeconomic and gender-specific mental health impacts of COVID-19 on slum dwellers.MethodologyGeneralized ordered logistic regression with auto-fit was performed to identify predictors of socioeconomic and mental health conditions among the participants. Data analysis was conducted using Stata software, with a 95% confidence interval and p-value less than 0.05.ResultsThe study found that males who were smokers and lost their jobs during the pandemic were more prone to experience severe mental health problems. Over 60% of females experienced moderate mental health issues due to the use of unimproved sanitation facilities. Moreover, females who received support during the pandemic and lived in areas with fixed garbage disposal had less probability of experiencing severe mental health issues.ConclusionImplementing community-based initiatives that promote social integration, providing skill-building opportunities, and addressing economic vulnerabilities may significantly improve the mental well-being of this vulnerable community. Collaboration between the Government and stakeholders is essential to address critical needs, such as proper garbage disposal and gender-segregated sanitation facilities, to build a sustainable community.

Oil price shocks and human capital channels in Nigeria

Nigeria faces persistent challenges of high unemployment and poverty, worsened by its over-reliance on the oil sector. While many studies have investigated the relationship between oil price volatility and human capital development, few have examined how this relationship impacts both basic and advanced human capital channels in developing economies; this study addresses that gap by using a Structural Vector Auto Regression (SVAR) approach to investigate how oil price shocks influence human capital channels. Co-integration tests reveal significant long-term relationships among the variables. For the basic channel, oil price shocks are negatively associated with secondary school enrollment but positively linked to primary school enrollment. In the advanced channel, oil price has a positive effect on government expenditure on tertiary education but negatively affects tertiary institution enrollment. The impulse response function confirms that oil price fluctuations significantly affect both basic and advanced channels of human capital. The findings show the detrimental impact of oil price shocks on Nigeria's human capital development, which may negatively affect sustainable development. The study emphasises the urgent need for economic diversification to reduce the economy's vulnerability to oil shocks and promote long-term growth and human capital development.

Analysis of The Impact of Climate Change on The Vulnerability of Coastal Areas and Small Islands in Gili Air, North Lombok

This research analyzes the impact of climate change on the vulnerability of coastal areas and small islands in Gili Air, North Lombok. Climate change, including rising temperatures and sea levels, is affecting coastal ecosystems, such as coral reefs which are vulnerable to bleaching and death. This study identifies a trend of increasing built-up land on Gili Air in the 2013-2022 period, which is caused by tourism promotion policies. The impact of this policy causes an increase in the number of tourists and local residents, which then increases the need for tourism supporting facilities. These land cover changes and development pressures increase Gili Air's environmental and economic vulnerability to climate change. These findings emphasize the importance of comprehensive adaptation and mitigation strategies to preserve the sustainability of ecosystems and the livelihoods of local residents.

Exploring the Complexity of Energy Poverty in the EU: Measure it, Map it, Take Actions

AbstractEnergy poverty presents a pressing challenge in the European Union (EU), worsened by recent geopolitical events and economic vulnerabilities, particularly highlighted by the COVID-19 crisis. This article explores the complexity of energy poverty within the EU context, emphasizing the necessity to define, measure, and monitor it comprehensively. It reviews the evolution of energy poverty definitions and causes, underlining the multifaceted nature of the issue influenced by factors such as low-income, high-energy prices, and building inefficiencies. Various measurement indexes are examined, and categorized into consensus, expenditure-income comparison, and direct/indirect measurement indicators, offering insights into their advantages and limitations. Furthermore, the work discusses mapping methodologies to pinpoint instances of energy poverty spatially. It also examines best regulatory practices employed by nations, including economic accessibility enhancements and structural interventions like investments in energy efficiency and renewable sources. Finally, the authors propose a novel approach to map energy poverty at municipal granularity in Italy, integrating economic vulnerability and building energy efficiency indices.

Paradigm Shift in Finance: Insights from COVID 19

Purpose: This paper analyzes the literature and findings on the COVID-19 impact on the economy and provides insights and policy formulations for future pandemic-like crises. Methodology: Our paper follows secondary research analyzing existing literature on COVID-19 and its impact on the global economy. Our paper adopts a methodical literature survey approach to analyze peer-reviewed finance research articles. This approach has helped to evaluate the policy responses to the pandemic by analyzing studies on fiscal stimulus, monetary interventions, and public health measures. Further, it helps identify common trends, patterns, and gaps in knowledge. Findings: The COVID-19 pandemic has driven a paradigm shift in finance, reshaping how financial institutions operate, how consumers interact with financial services, and how markets function. These changes will likely have lasting effects, driving continued innovation and transformation in the financial sector. A forward-looking fiscal and monetary policy is vital for long-term economic care. The policies include investing in healthcare infrastructure, the digital economy, and education to prepare for future crises. Unique Contribution to Theory, Practice, and Policy: The COVID-19 pandemic undeniably created upheavals in the financial world. It forced a reevaluation of many long-held assumptions and accelerated trends already underway. Our paper demonstrates that future pandemic policies need to be more flexible and adaptable based on the economic structure and intensity of the crisis, along with international cooperation. The COVID-19 highlighted the economic vulnerabilities, transformed consumer behavior, and altered market structures. The paper’s insights provide a mechanism and illustration of how to mitigate and minimize such a crisis. Traditional economic and monetary policies are ill-suited. Countries should be ready for responsive policies and adjustments to manage pandemic-like crises; hence, this paper provides the groundwork for more adaptable policies.

“Economic exclusion and the health and wellbeing impacts of the oil industry in the Niger Delta region: a qualitative study of Ogoni experiences”

BackgroundWhen managed effectively, oil wealth can drive economic development and improve wellbeing. Conversely, as has been the experience in Ogoniland in the Niger Delta, the presence of the oil industry can lead to environmental degradation and social and economic vulnerabilities with negative impacts on health and wellbeing. Few studies have explored the experiences and perceptions of these impacts among residents of host communities themselves.MethodsThis qualitative study explored Ogoni residents’ experiences and perceptions of oil-industry related economic exclusion and associated impacts on health and wellbeing. In-depth interviews with 22 participants from four Local Government Areas (LGAs) were analyzed with open (inductive) coding. Guided by constructivist philosophy, interpretation of emerging themes was informed by the concept of social exclusion which recognizes that multi-dimensional processes can deprive individuals or groups of resources, rights, goods, and services, thus limiting broader societal participation.ResultsFindings highlight the exclusionary impacts of the oil industry at the intersection of i) damaged livelihoods and family income, that increased economic vulnerability and reduced participants’ ability to meet basic needs including ability to pay for healthcare; ii) lack of progress on environmental remediation and non-transparent benefit sharing schemes that exacerbate economic displacement and contribute to ongoing exposures to air and water pollution; and iii) insufficient of investment in economic development and essential health services, limiting employment opportunities and ability to access adequate healthcare.ConclusionAddressing these issues requires integrated policy interventions focusing on equitable resource distribution, environmental restoration, and inclusive economic development to promote sustainable community resilience.

Unveiling economic resilience: exploring the impact of financial vulnerabilities on economic volatility through the economic vulnerability index

While earlier studies have explored the relationship between economic vulnerability and economic resilience, they have repeatedly overlooked the significance of financial vulnerabilities within the economic vulnerability index, and the effects of financial and economic vulnerabilities on economic volatility. An attempt is made in this study to close this research gap by conducting a detailed analysis of the relationship between financial vulnerabilities, economic vulnerability and economic volatility, stressing the significance of tweaking prevailing vulnerability indices to fully encapsulate its multidimensional nature in developing countries. Employing panel data for 142 countries over the 2002 to 2022 period and a robust econometric approach like the Driscoll and Kraay fixed effect method, the study reveals that financial vulnerabilities yield significant coefficients to influence economic volatility, thereby accentuating their significance in the Economic Vulnerability Index. Sub-group analyses reinforce the need for incorporating financial variables in vulnerability investigations. Moreover, the causality tests reveal that all the variables and indices meant to capture the economic and financial vulnerabilities Granger causes economic volatility across the sample. In essence, this study fills a critical gap in existing research by demonstrating, that financial vulnerabilities significantly influence economic volatility, underscoring the imperative of integrating financial variables into vulnerability assessments for policymakers and scholars focusing on sustainable development. This study contributes to a broader understanding of economic vulnerability by highlighting the crucial role of financial vulnerabilities in driving economic volatility, suggesting a fundamental reconsideration of existing vulnerability assessment frameworks for policymakers and researchers focused on sustainable development frameworks. By uncovering the causal relationship between financial vulnerabilities and economic volatility across a diverse set of countries, the findings underscore the imperative of integrating financial factors into vulnerability investigations to enhance resilience and stability in developing economies.