The long-run impact of coups on Fiji's economy: evidence from a computable general equilibrium model

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The long-run impact of coups on Fiji's economy: evidence from a computable general equilibrium model

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Paresh Kumar Narayan (Department of Accounting, Finance and Economics, Griffith University, Australia)
Biman Chand Prasad (Department of Economics, The University of the South Pacific, Fiji)

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Paresh Kumar Narayan

Abstract

Coups have been used as a weapon to overthrow democratic governments in Fiji since 1987. The post-1987 period has been one of the most volatile ones in Fiji's history, in that it has undergone 15 changes in government. In this paper, we analyse the long run economy-wide impact of the May 2000 coup on Fiji's economy. This goal is achieved by using the computable general equilibrium model, which is at the forefront of 'impact studies'. We find that coups will have an adverse impact on the Fijian economy: real GDP will fall by around 8 per cent, real national welfare will fall by around 7 per cent and real consumption will fall by around 2 per cent in the long-run. Copyright © 2006 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 19 (2007)
Issue (Month): 2 ()
Pages: 149-160
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Handle: RePEc:wly:jintdv:v:19:y:2007:i:2:p:149-160

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Tavares, Jose & Wacziarg, Romain, 2001. "How democracy affects growth," European Economic Review, Elsevier, vol. 45(8), pages 1341-1378, August. [Downloadable!] (restricted)
Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank. [Downloadable!]
Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
Paolo Mauro, 2002. "The Persistence of Corruption and Slow Economic Growth," IMF Working Papers 02/213, International Monetary Fund.
Other versions:
- Paolo Mauro, 2004. "The Persistence of Corruption and Slow Economic Growth," IMF Staff Papers, Palgrave Macmillan Journals, vol. 51(1), pages 1. [Downloadable!] (restricted)
Scully, Gerald W, 1988. "The Institutional Framework and Economic Development," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 652-62, June. [Downloadable!] (restricted)

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