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Growth Constraints and Determinants of a South Pacific Island in a Global Economy: A Study of Fiji


  • T. K. Jayaraman
  • Chee-Keong Choong


In a global economy, the South Pacific islands face unique constraints to growth. The study investigates whether Fiji was benefited by three-decade old open trade policies. Through a multivariate cointegration analysis, the study establishes the existence of a long-run relationship between open trade policy and physical and human capital resources. Although physical capital had a positive impact on growth, the existing complementary relationship between two kinds of capital requires that a threshold between physical and human capital needs to be attained before any negative influence on growth can be transformed into positive impact.

Suggested Citation

  • T. K. Jayaraman & Chee-Keong Choong, 2006. "Growth Constraints and Determinants of a South Pacific Island in a Global Economy: A Study of Fiji," Global Economic Review, Taylor & Francis Journals, vol. 35(4), pages 425-444.
  • Handle: RePEc:taf:glecrv:v:35:y:2006:i:4:p:425-444
    DOI: 10.1080/12265080601053850

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