Export Performance in South Pacific Countries Marginally Endowed with Natural Resources: Samoa and Tonga, 1960 to 1999

Abstract

Stochastic dominance analysis was used to assess export performance in two Polynesian countries of similar size and structure that are both marginally endowed with natural resources: Samoa and Tonga. In general, total and agricultural export values declined over the study period in both countries, brought about by a significant decline in the value of agricultural exports while non- agricultural exports showed small increases. The one exception to this trend was in Tonga during the 1990s when squash exports brought about a revival in agricultural export values. Results suggest that these countries are likely to struggle to achieve sustainable economic development, given their limited natural resource endowments. The fisheries sector holds the key to whether their economies can continue to be productive by exploiting further the fishery resources within their EEZs to develop domestic fishing industries.export performance, stochastic dominance, Samoa, Tonga, International Relations/Trade,