Services and economic growth in Pacific Island countries
Purpose – The purpose of this paper is to present an empirical study of the contribution of the services sector to per capita economic growth for Pacific Island countries. Design/methodology/approach – Within the new growth theory framework, the empirical procedure consisted of the regression analysis of data using the panel data fixed effects procedure. Findings – The results confirm the positive and statistically significant correlation of services growth to per capita gross domestic product growth. Research limitations/implications – Limitations largely centre on the use of aggregate cross-country data. Variations may be found in what actually drives the services growth at the country level. Thus, a country-specific study would be more appropriate in order to get more robust results. Also, the data do not capture the effect of non-market services. Disaggregate services data that separate market data services with non-market services would provide a more accurate picture of the influence of non-market services. Practical implications – The practical implication is that that service sectors in the Pacific Island countries ought to be given greater support, for example, investment in physical and institutional infrastructure, market access, financial support, skill development and investment incentives. Social implications – Pacific Islands services sectors contribute to household welfare through paid employment and meet household demands of service sector output. Originality/value – This paper presents the first study among the Pacific Island countries that has examined the importance of services sector and its contribution to growth. The findings of this study are useful to Pacific policy makers in terms of improving the services sector through instituting appropriate growth enhancing policies.
Volume (Year): 9 (2010)
Issue (Month): 2 (July)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/ijdi.htm Email:
References listed on IDEAS
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.:
- Ram, Rati, 1987. "Exports and Economic Growth in Developing Countries: Evidence from Time-Series and Cross-Section Data," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 51-72, October.
- N. Gregory Mankiw & David Romer & David N. Weil, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 107(2), pages 407-437.
- Nadeem Burney, 1996. "Exports and economic growth: evidence from cross-country analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 3(6), pages 369-373.
- Zoltan Acs & Sameeksha Desai & Jolanda Hessels, 2008. "Entrepreneurship, economic development and institutions," Small Business Economics, Springer, vol. 31(3), pages 219-234, October.
- Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
- Kelley, Allen C, 1988. "Economic Consequences of Population Change in the Third World," Journal of Economic Literature, American Economic Association, vol. 26(4), pages 1685-1728, December.
- Robert J. Barro, 1995.
"Inflation and Economic Growth,"
NBER Working Papers
5326, National Bureau of Economic Research, Inc.
- Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
- Dilip Dutta, 2008. "Services and Development," Chapters, in: International Handbook of Development Economics, Volumes 1 & 2, chapter 34 Edward Elgar Publishing.
- Easterly, William & Rebelo, Sérgio, 1994.
"Fiscal Policy and Economic Growth: An Empirical Investigation,"
CEPR Discussion Papers
885, C.E.P.R. Discussion Papers.
- Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
- William Easterly & Sergio Rebelo, 1993. "Fiscal Policy and Economic Growth: An Empirical Investigation," NBER Working Papers 4499, National Bureau of Economic Research, Inc.
- Fischer, Stanley, 1993.
"The role of macroeconomic factors in growth,"
Journal of Monetary Economics,
Elsevier, vol. 32(3), pages 485-512, December.
- Stephen Knowles, 1997. "Which level of schooling has the greatest economic impact on output?," Applied Economics Letters, Taylor & Francis Journals, vol. 4(3), pages 177-180.
- Bhagwati, Jagdish N, 1987. "Trade in Services and the Multilateral Trade Negotiations," World Bank Economic Review, World Bank Group, vol. 1(4), pages 549-69, September.
- Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
- Sherrill Shaffer, 2006. "Establishment Size by Sector and County-Level Economic Growth," Small Business Economics, Springer, vol. 26(2), pages 145-154, 03.
- World Bank, 2008. "World Development Indicators 2008," World Bank Publications, The World Bank, number 11855, November.
- Magnus Henrekson & Anders Lundström, 2009.
"The Global Award for Entrepreneurship Research,"
Small Business Economics,
Springer, vol. 32(1), pages 1-14, January.
- Meghana Ayyagari & Thorsten Beck & Asli Demirguc-Kunt, 2007. "Small and Medium Enterprises Across the Globe," Small Business Economics, Springer, vol. 29(4), pages 415-434, December.
- repec:pal:imfstp:v:40:y:1993:i:3:p:512-541 is not listed on IDEAS
- Augustin Kwasi Fosu, 1996. "Primary Exports and Economic Growth in Developing Countries," The World Economy, Wiley Blackwell, vol. 19(4), pages 465-475, 07.
- Fosu, Augustin Kwasi, 1990. "Exports and economic growth: The African case," World Development, Elsevier, vol. 18(6), pages 831-835, June.
- Park, Se-Hark & Chan, Kenneth S., 1989. "A cross-country input-output analysis of intersectoral relationships between manufacturing and services and their employment implications," World Development, Elsevier, vol. 17(2), pages 199-212, February.
- Savvides, Andreas, 1995. "Economic growth in Africa," World Development, Elsevier, vol. 23(3), pages 449-458, March.
When requesting a correction, please mention this item's handle: RePEc:eme:ijdipp:v:9:y:2010:i:2:p:113-130. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
If references are entirely missing, you can add them using this form.