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Government effectiveness, climate risk and economic resilience in Pacific Island Countries

Author

Listed:
  • Ma, Jing
  • Zhang, Shenglan
  • Li, Qing
  • Zhong, Zuchang

Abstract

This paper examines how government effectiveness influences economic resilience in Pacific Island countries under high climate risk. Using panel data from 12 economies between 2000 and 2024, the study finds that government effectiveness significantly enhances resilience, but its effect weakens under frequent climate shocks. Digital infrastructure and the rule of law strengthen the governance–resilience link by improving policy efficiency and institutional credibility. Further analyses reveal that environmental exposure, resource dependence, and industrial structure condition this relationship: high precipitation and agricultural or resource dependence diminish the positive effect, while stronger industrial and service sectors amplify it. These findings suggest that institutional capacity, environmental vulnerability, and structural conditions jointly shape resilience outcomes. Strengthening governance, integrating climate adaptation, expanding digital infrastructure, and promoting structural diversification are essential for transforming Pacific Island economies from vulnerability management toward sustainable resilience.

Suggested Citation

  • Ma, Jing & Zhang, Shenglan & Li, Qing & Zhong, Zuchang, 2025. "Government effectiveness, climate risk and economic resilience in Pacific Island Countries," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 1877-1893.
    • Handle: RePEc:eee:ecanpo:v:88:y:2025:i:c:p:1877-1893
    DOI: 10.1016/j.eap.2025.11.010
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    References listed on IDEAS

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