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Growth Constraints and Determinants of a South Pacific Island in a Global Economy: A Study of Fiji

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Author Info

  • T. K. Jayaraman
  • Chee-Keong Choong

Abstract

In a global economy, the South Pacific islands face unique constraints to growth. The study investigates whether Fiji was benefited by three-decade old open trade policies. Through a multivariate cointegration analysis, the study establishes the existence of a long-run relationship between open trade policy and physical and human capital resources. Although physical capital had a positive impact on growth, the existing complementary relationship between two kinds of capital requires that a threshold between physical and human capital needs to be attained before any negative influence on growth can be transformed into positive impact.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/12265080601053850
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Global Economic Review.

Volume (Year): 35 (2006)
Issue (Month): 4 ()
Pages: 425-444

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Handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:425-444

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Related research

Keywords: open trade policy; endogenous growth; physical capital; human capital; cointegration;

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