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Temporal causality and the dynamics of democracy, emigration and real income in Fiji

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Author Info
PARESH KUMAR NARAYAN
RUSSELL SMYTH

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Abstract

This study is the first to explore temporal causality between democracy, emigration and real income in Fiji within a multivariate cointegration model. We find three long run relationships between democracy, emigration and real income. In the long run there is evidence that migration and democracy Granger cause real GDP in Fiji; real GDP and democracy Granger cause migration from Fiji and that real GDP and migration Granger cause democracy in Fiji. In the short run we find unidirectional Granger causality running from migration to real GDP and from democracy to real GDP, but neutrality between democracy and migration in the short run. We also extend the analysis to examine the degree of exogeneity of the variables beyond the sample period through considering the decomposition of variance and impulse response functions.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 19 (2005)
Issue (Month): 2 (March)
Pages: 245-261
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Handle: RePEc:taf:irapec:v:19:y:2005:i:2:p:245-261

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Related research
Keywords: Fiji; democracy; migration; cointegration; causality;

References listed on IDEAS
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    Other versions:
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  4. Rivera-Batiz, Francisco L & Rivera-Batiz, Luis A, 2002. "Democracy Participation, and Economic Development: An Introduction," Review of Development Economics, Blackwell Publishing, vol. 6(2), pages 135-50, June. [Downloadable!] (restricted)
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  18. Hansen, B.E., 1990. "A Powerful, Simple Test For Cointegration Using Cochrane- Orcutt," RCER Working Papers 230, University of Rochester - Center for Economic Research (RCER).
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Paresh Kumar Narayan & Biman Chand Prasad, 2006. "Doubling fish exports or garment exports: which would benefit the Fijian economy most? Evidence from a computable general equilibrium model," Applied Economics, Taylor and Francis Journals, vol. 38(6), pages 717-723, April. [Downloadable!] (restricted)
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