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The long-run impact of coups on Fiji's economy: evidence from a computable general equilibrium model


  • Paresh Kumar Narayan

    (Department of Accounting, Finance and Economics, Griffith University, Australia)

  • Biman Chand Prasad

    (Department of Economics, The University of the South Pacific, Fiji)


Coups have been used as a weapon to overthrow democratic governments in Fiji since 1987. The post-1987 period has been one of the most volatile ones in Fiji's history, in that it has undergone 15 changes in government. In this paper, we analyse the long run economy-wide impact of the May 2000 coup on Fiji's economy. This goal is achieved by using the computable general equilibrium model, which is at the forefront of 'impact studies'. We find that coups will have an adverse impact on the Fijian economy: real GDP will fall by around 8 per cent, real national welfare will fall by around 7 per cent and real consumption will fall by around 2 per cent in the long-run. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Paresh Kumar Narayan & Biman Chand Prasad, 2007. "The long-run impact of coups on Fiji's economy: evidence from a computable general equilibrium model," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(2), pages 149-160.
  • Handle: RePEc:wly:jintdv:v:19:y:2007:i:2:p:149-160 DOI: 10.1002/jid.1296

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    References listed on IDEAS

    1. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
    2. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    3. Paolo Mauro, 2004. "The Persistence of Corruption and Slow Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 51(1), pages 1-1.
    4. Scully, Gerald W, 1988. "The Institutional Framework and Economic Development," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 652-662, June.
    5. Tavares, Jose & Wacziarg, Romain, 2001. "How democracy affects growth," European Economic Review, Elsevier, vol. 45(8), pages 1341-1378, August.
    6. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
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    Cited by:

    1. Prasad, Arti & Narayan, Paresh Kumar & Narayan, Jashwini, 2007. "Exploring the oil price and real GDP nexus for a small island economy, the Fiji Islands," Energy Policy, Elsevier, vol. 35(12), pages 6506-6513, December.
    2. Narayan, Paresh Kumar & Narayan, Seema & Prasad, Arti, 2008. "Understanding the oil price-exchange rate nexus for the Fiji islands," Energy Economics, Elsevier, vol. 30(5), pages 2686-2696, September.
    3. Xiaodong Gong & Maheshwar Rao, 2014. "‘The Economic Impact of Prolonged Political Instability: A Case Study of Fiji’," NATSEM Working Paper Series 14/26, University of Canberra, National Centre for Social and Economic Modelling.
    4. P K Narayan & S Narayan, 2008. "Estimating the Demand for Money in an Unstable Open Economy: The Case of the Fiji Islands," Economic Issues Journal Articles, Economic Issues, vol. 13(1), pages 71-91, March.

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