resource exports (as percentage of GDP), and manufacturing imports (as percentage of GDP). These variables will broadly capture the decline in commodity prices and the disruption of global value chains as a result of the pandemic. Finally, we gather data on exports to advanced countries, exports to developing countries outside the region, and intra-regional exports. All these variables are expressed as a percentage of GDP. Therefore, we explore whether exposure to inter- or intraregional trade exacerbates or mitigates the impact of the pandemic. All the trade data was collected from the World Bank’s World Development Indicators (WDI).

_International Financing Flows_ . Gross capital inflows as a percentage of GDP is used as the measure of exposure to or dependence on international financing flows. We assume that countries with greater dependence on foreign financing flows will exhibit a greater decline in growth. We also look at the impact of the composition of gross inflows to investigate whether certain types of financing flows either exacerbate or mitigate the growth impact of the pandemic. Consequently, we run additional regressions that include gross foreign direct investment (FDI) inflows, portfolio investment inflows, and other investment inflows. The different types of gross inflows are expressed as a percentage of GDP, and the data has been collected from the IMF’s Balance of Payments Statistics (BOPS6).

The responsiveness of growth to the pandemic through its exposure to other international financing flows such as remittances and tourism revenues is also examined. We gather data on workers’ remittances as a percentage of GDP from the World Bank (2020c).<sup>17</sup> The pandemic led to a series of containment measures that included international travel restrictions and there is evidence that economic activity is collapsing in countries that are highly dependent from tourism revenues. The data on international tourism receipts (as a percentage of GDP) is collected from the WDI.<sup>18</sup> Finally, the extent of international capital flows across developing countries is alternatively measured by the Chinn-Ito index of financial openness (Chinn and Ito 2006 2008). This indicator is based on the presence (or lack thereof) of restrictions on cross-border financial transactions reported in the IMF’s Annual Report on Exchange Arrangements and Exchange Restrictions; namely, the existence of multiple exchange rates; the presence of restrictions on current account transactions; restrictions on capital account transactions, and regulatory requirements of the surrender of export proceeds.

_Health and Human Capital._ Our proxy of human capital is the human capital index (HCI), which reflects the distance of the human capital of the country relative to a benchmark of complete

> 17 Workers’ remittances are defined as the sum of: (1) workers’ remittances recorded under the heading “current transfers” in the current account of the balance of payments; (b) compensation of employees which includes wages, salaries, and other benefits of border, seasonal, and other nonresident workers (such as local staff of embassies) and which are recorded under the “income” subcategory of the current account; and (c) migrants’ transfers which are reported under “capital transfers” in the capital account of the IMF’s Balance of Payments Statistics. The calculations are based on data from the IMF Balance of Payments Statistics database and data releases from central banks, national statistical agencies, and World Bank country desks.

> 18 International tourism receipts are expenditures by international inbound visitors, including payments to national carriers for international transport. These receipts include any other prepayment made for goods or services received in the destination country. They may also include receipts from same-day visitors, except when these are important enough to justify separate classification. For some countries they do not include receipts for passenger transport items.

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