Growth Constraints and Determinants of a South Pacific Island in a Global Economy: A Study of Fiji
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.
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Volume (Year): 35 (2006)
Issue (Month): 4 ()
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