In the wake of the global liberalization of financial and currency markets in the 1970s and 1980s, currency substitution has given rise to increasing policy concern. In developing countries, this phenomenon mainly results from the flight out of the domestic currency as a reaction to...

This paper aims at estimating the economic vulnerability of developing countries to disruptions in global value chains (GVCs) due to the COVID-19 pandemic. It uses data on trade in value-added for a sample of 12 developing countries in sub-Saharan Africa, Asia and Latin America to assess their...