IDEAS home Printed from https://ideas.repec.org/a/eme/ijdipp/v9y2010i2p113-130.html
   My bibliography  Save this article

Services and economic growth in Pacific Island countries

Author

Listed:
  • Azmat Gani
  • Michael D. Clemes

Abstract

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.

Suggested Citation

  • Azmat Gani & Michael D. Clemes, 2010. "Services and economic growth in Pacific Island countries," International Journal of Development Issues, Emerald Group Publishing, vol. 9(2), pages 113-130, July.
    • Handle: RePEc:eme:ijdipp:v:9:y:2010:i:2:p:113-130
    as

    Download full text from publisher

    File URL: http://www.emeraldinsight.com/10.1108/14468951011062327?utm_campaign=RePEc&WT.mc_id=RePEc
    Download Restriction: Access to full text is restricted to subscribers

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    3. 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.
    4. Balassa, Bela, 1978. "Exports and economic growth : Further evidence," Journal of Development Economics, Elsevier, vol. 5(2), pages 181-189, June.
    5. Savvides, Andreas, 1995. "Economic growth in Africa," World Development, Elsevier, vol. 23(3), pages 449-458, March.
    6. Fischer, Stanley, 1993. "The role of macroeconomic factors in growth," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 485-512, December.
    7. 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.
    8. 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.
    9. World Bank, 2008. "World Development Indicators 2008," World Bank Publications, The World Bank, number 11855.
    10. 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.
    11. Nadeem Burney, 1996. "Exports and economic growth: evidence from cross-country analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 3(6), pages 369-373.
    12. Magnus Henrekson & Anders Lundström, 2009. "The Global Award for Entrepreneurship Research," Small Business Economics, Springer, vol. 32(1), pages 1-14, January.
    13. 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.
    14. Malcolm Knight & Norman Loayza & Delano Villanueva, 1993. "Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach," IMF Staff Papers, Palgrave Macmillan, vol. 40(3), pages 512-541, September.
    15. Augustin Kwasi Fosu, 1996. "Primary Exports and Economic Growth in Developing Countries," The World Economy, Wiley Blackwell, vol. 19(4), pages 465-475, July.
    16. 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.
    17. Sherrill Shaffer, 2006. "Establishment Size by Sector and County-Level Economic Growth," Small Business Economics, Springer, vol. 26(2), pages 145-154, March.
    18. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
    19. Bhagwati, Jagdish N, 1987. "Trade in Services and the Multilateral Trade Negotiations," World Bank Economic Review, World Bank Group, vol. 1(4), pages 549-569, September.
    20. Zoltan Acs & Sameeksha Desai & Jolanda Hessels, 2008. "Entrepreneurship, economic development and institutions," Small Business Economics, Springer, vol. 31(3), pages 219-234, October.
    21. repec:wbk:wbpubs:28241 is not listed on IDEAS
    22. Dilip Dutta, 2008. "Services and Development," Chapters,in: International Handbook of Development Economics, Volumes 1 & 2, chapter 34 Edward Elgar Publishing.
    23. Fosu, Augustin Kwasi, 1990. "Exports and economic growth: The African case," World Development, Elsevier, vol. 18(6), pages 831-835, June.
    24. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dibyendu Maiti & Sunil Kumar, 2016. "Regional agreements, trade cost and flows in the Pacific," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 181-199, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: http://www.emeraldinsight.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.