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Tourism Earnings and Economic Growth in Fiji: Symmetric, Asymmetric and Resilience Dynamics

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  • Diana Botei
  • Jundong Hou
  • Williams Shaw

Abstract

This study examines the asymmetric effects of tourism earnings on Fiji's economic growth, focusing on short‐ and long‐run dynamics using ARDL and NARDL models. It integrates controls, primary sector, government spending, capital formation and CO2, to examine how sectoral interdependencies and public investment shape tourism‐led growth. Results show positive tourism shocks have greater long‐run GDP effects than negative ones, supporting the Tourism‐Led Growth Hypothesis. It also aligns with Endogenous Growth Theory by highlighting the primary sector's buffering role against negative tourism shocks. The study provides valuable insights for policy strategies in small island developing states.

Suggested Citation

  • Diana Botei & Jundong Hou & Williams Shaw, 2026. "Tourism Earnings and Economic Growth in Fiji: Symmetric, Asymmetric and Resilience Dynamics," Journal of International Development, John Wiley & Sons, Ltd., vol. 38(2), pages 313-329, March.
    • Handle: RePEc:wly:jintdv:v:38:y:2026:i:2:p:313-329
    DOI: 10.1002/jid.70054
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