The radar diagrams below by country indicate their respective fundamental risk indicator scores in 2012. The scores are obtained using principal component analysis (PCA) using procedures explained in Chapters 4 to 9 in Karolyi (2015, Oxford University Press). The scores are standardized on a Normal scale for all 57 emerging (shown below) and developed countries; scores that are negative indicate greater fundamental risks and those that are positive, less fundamental risks. See the book for additional details on construction.

The risk indicator scores for what are traditionally considered developed market countries are also available and are prominently featured in Chapters 4 to 9 of the book. [Note that the scale for each indicator is maintained as for the traditionally defined emerging market countries; some scores for select countries run off the scale.]

Errata

A number of typos or other errors have been identified by many readers, research assistants, graduate students, for which I am very grateful. Getting the data and facts correct is very important to me, so please continue to send any that you uncover by email (gak56@cornell.edu):

Page 98, paragraph 3, sentence 1: Should read “Many of my measures of financial openness to now…”

Page 176, paragraph 1, last sentence: “…then an investor’s expected lifetime depends on where he or she is located” should read “…expected lifetime consumption…”

Page 199, paragraph 2, last sentence: Should read “On a percentage basis, equity outflows were largest for Argentina (-$924 million) and Venezuela (-$474 million).” Table 11.1 has errors in last column in calculations of net foreign equity flows as a percentage of 2012 foreign equity holdings. Corrected table is available here. The overall regression results in Table 11.2 are correct and unaffected by this typo.

Page 94, Table 6.1. The rows associated with countries below Slovakia through to Vietnam shifted up one row in copy-editing. Corrected table is available here. The overall PCA scores are correct and unaffected by this typo.

Page 99, Table 6.2. The rows associated with countries below Slovakia through to Vietnam shifted up one row in copy-editing. Corrected table is available here. The overall PCA scores are correct and unaffected by this typo.