Technological Achievement, High Technology Exports and Growth

The relationship between high technology exports and per capita economic growth in countries with higher levels of technological achievement is examined. Three groups of countries classified as technological leaders, potential leaders and dynamic adopters are chosen for empirical analysis on the basis of the technological achievement index. The regression results reveal that high technology exports exert a statistically significant positive effect on growth of the technological leader category of countries and a positive but statistically insignificant effect on thepotential leader category of countries. The main policy implication is that low-income countries with lower levels of technological achievement and growth may need to focus on new product development with high technological content so as to be competitive in the global trading environment as well as to enhance their growth and development

Institutional Quality and Trade in Pacific Island Countries

This research examines the impact of institutional quality on trade in selected Pacific Island Countries (PICs). Four indicators of institutional quality are chosen: government effectiveness, rule of law, regulatory quality and control of corruption; for six PICs: Fiji, Kiribati, Samoa, Solomon Islands, Tonga and Vanuatu.Institutional Quality on Trade

Constructing a Governance Index for Cook Islands, 1985-2005

This article presents an index of governance performance for Cook Islands for the period 1985 to 2005. Three dimensions of governance (rule of law, government effectiveness, and regulatory quality) are measured using various indicators. The constructed index indicates that Cook Islands' governance performance improved between 1996 and 1999 but stagnated from 2000 to 2005. The improvement was largely due to fiscal austerity measures resulting in better economic management, competition in the essential services sector, and an expansion of the private sector. The stagnation in the post 1999 period is largely attributable to increased political instability and rising corruption. The governance index provides a useful basis from which to monitor future changes in governance performance

An econometric analysis of growth performance and adjustment under policies inspired by the IMF in the Pacific Island economies : a thesis presented to Massey University in fulfilment of the requirements for the degree of Doctor of Philosophy in the Institute of Development Studies

This study, utilising a region-country-specific approach, examines the experience of four Pacific island economies (Fiji, Papua New Guinea, the Solomon Islands and Western Samoa) under policies inspired by the International Monetary Fund's (IMF) during 1980-92. To achieve this, the study examines the nature and the causes of economic crises in these countries and IMF's policy response. An empirical analysis of this study starts with a formulation of a growth model within the new endogenous theory of growth, examining the significance of a range of factors thought to have influenced growth performance. The theoretical arguments of IMF-inspired policies and an empirical analysis testing the arguments are also examined. The central concern is how far IMF-inspired macro policies produced desired objectives. This is investigated through an econometric analysis of the relationship between the objective variables of sustained growth, a viable balance of payments and low inflation, and a number of its instrumental tools, and examines the contribution of IMF-inspired policies on the socio-economic development of these countries. The results show the economic crises during 1980-92 were a product of a combination of internal economic and non-economic and external factors causing sluggish growth, large deficits in current account, deteriorating balance of trade and inflationary pressures. The investigation of the crises revealed that some factors were common in all four countries while others were country specific. Empirical results show high inflation, low levels of outward orientation, high government consumption, exchange rate variability and vulnerability to the vagaries of natural disasters and the international economic environment adversely affected growth performance. Empirical results provide weak evidence of political instability adversely affecting economic growth while investments in human and physical capital did not contribute to growth. In evaluating IMF-inspired policies, the developing South Pacific country case studies indicate that such policies have satisfactorily shown most of the desired effects of policy variables on the stated macroeconomic objective of a viable balance of payments in all four countries. However, while some effects of the policy changes on the objective variable are as expected and desirable, their impacts are insignificant in most cases. The growth objective was most effectively met in Western Samoa, balance of payments in Fiji and price stability in PNG. The theoretical arguments of the study also reveal that IMF-inspired policies have been rigid, inclined to the monetary approach to the balance of payments, but generally failed to take into account the preferences of people in a country and the impact on them. This analysis largely complements this theoretical contention, revealing slowing and sometimes reversing progress in incomes, real wages, food prices, employment creation, provision of health services and nutrition levels, and showing that IMF-inspired policies did not make a significant contribution towards enhancing the standard of living. The study concludes that solving the development problem of South Pacific countries requires more than simply targeting macroeconomic variables. IMF-inspired policies that take into account the macroeconomic as well as socio-economic variables are a first step in enhancing the growth and development of the developing countries in the South Pacific and providing long-term betterment for the people

Pacific Island countries high per capita foreign aid requirement

The determinants of Pacific island countries large foreign aid requirement are examined using a panel corrected standard errors and a country-fixed-effects model for the period 1985–99. Empirical results provide confirmation that poor economic growth, foreign exchange shortage, quality of life, small size and vulnerability are key determinants

Some Aspects of Trade between Australia and Pacific Island Countries

Abstract Australia and Pacific Island countries (PICs) have maintained an ongoing trade and economic relationship for several years. The determinants of trade between Australia and PICs are examined using a gravity model by utilising time-series cross-country data for the period 1981 to 2005. The empirical findings indicate that imports by PIC from Australia are significantly determined by PICs' population and their per capita GDP. The results also suggest that PICs' exports are significantly determined by PICs and Australia's population, PICs' infrastructure (telecommunications) and the distance to Australia. Consistent with the findings of other studies using the gravity model, distance is found to be a friction to PICs' exports to Australia. While this study identifies factors influencing PICs' trade with Australia, a more substantial issue for the governments and trade policy makers in PICs is to look into the generally disappointing long-term trade performance. From a policy perspective, PICs would need to seriously look at increasing their export potential. Copyright 2009 The Author. Journal compilation 2009 Blackwell Publishing Ltd.

Food production, food imports and WTOs special and differential provisions to trade: the case of Pacific Island countries

This paper examines the extent of food production, imports, and trade policy opportunities in terms of the special and differential treatment (SDT) in Pacific Island countries (PICs). It is revealed that stagnating per capita incomes and high incidence of poverty are lowering the quality of life among a significant proportion of the PIC population. PICs' well-being is likely to be further worsened by falling and stagnating food production and significant rises in food prices as a result of food imports that range between 14 to 29 percent of total imports. PICs' future development is likely to be hampered by the looming economic fallout arising from regional integration. Thus, ensuring food self-sufficiency is essential for improved well-being. In this regard, the PICs window of opportunity is to maximize the utility of the SDT under the World Trade Organisations (WTO) provisions. Urgent governmental attention is required in terms of calibrating regional country-specific composite measures of trade and development parameters so as to allow the capacity of the PICs to bargain for the SDT with greater clarity, strength and meaning

The relationship between Fiji's exchange rate and trade balance: some policy implications

No abstract availabl

Governance and foreign aid in Pacific Island countries

This paper examines the relationship between indicators of governance and per capita foreign aid in a cross-section of seven PICs. Controlling for poor economic growth, foreign exchange shortage and small size, a fixed-effects model correcting for AR (1) errors is tested for the period 1996–2004 that incorporates five measures of governance. The findings here confirm that voice and accountability, rule of law and corruption are negatively correlated with per capita foreign aid. However, regulatory quality and government effectiveness are positively associated with per capita foreign aid. Some policy implications are drawn