Study on assessing economic vulnerability of small island regions

The main purpose of this study is to assess economic vulnerability of small island development regions as part of their sustainability constraints. By combining economic and environmental time series data, we assessed a composite index of economic vulnerability which is constructed from three exogenous variables, namely economic exposure, economic remoteness, and economic impact of environmental and natural disasters. We used the Amami Islands, Kagoshima Prefecture, Japan as the case studies for this paper. The results indicated that using a gross island products based valuation index, Kikaijima is the most vulnerable island in the Amami Islands with a composite economic vulnerability index (CEVI) value of 0.678, while by using a per capita based index, Okinoerabujima is considered the most vulnerable island with a CEVI value of 0.680. From the results we also revealed that smaller islands have relative higher vulnerability than the bigger one, which also confirms some previous country-level vulnerability studies. However, it is matter of fact that some islands that have relatively high vulnerability also have good economic performance as shown by their per capita income. In this regard, it can be argued that the success of these small islands could have been achieved in spite of and not because of their inherent vulnerability conditions as an indicator of sustainability constraint. Regarding these findings, we also examined a comparison between vulnerability results and the preliminary concept of an island's resilience in order to capture another perspective on sustainability assessment in a small island region.