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Determinants of Exports in a Small and Vulnerable Economy: Fiji Islands—A Disaggregated Analysis

Chand, Ronal and Singh, Rup and Lal, Sumeet and Chand, Nilesh and Jain, Devendra Kumar (2022) Determinants of Exports in a Small and Vulnerable Economy: Fiji Islands—A Disaggregated Analysis. European Journal of Development Research, TBC . TBC. ISSN 0957-8811

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The previous studies of exports performance in Fiji were carried out at the aggregate level. We conduct a disaggregated analysis of exports of three major products, namely, sugar, tourism, and gold. This analysis is useful for developing sector-based export promotion policies. The long run as well as dynamic export demand functions are estimated at the aggregate and disaggregate levels. The results identify a number of factors such as trading partner income, relative prices, productivity shocks, natural disasters, political disturbances, and the exchange rate that affect the export demand for sugar, tourism, and gold, though not in the same way. For instance, tourism and sugar enjoy the highest income elasticity. Sugar export is adversely affected by natural calamities and political upheavals. The political upheavals also affect tourism adversely in Fiji. The exchange rate affects the export of sugar more than others. The idea that devaluation will promote exports in Fiji needs careful investigation because results show that this will happen with a high cost, i.e. 5% nominal devaluation will be required to increase real exports by 1%.

Item Type: Journal Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HC Economic History and Conditions
Divisions: School of Accounting, Finance and Economics (SAFE)
Depositing User: Fulori Nainoca - Waqairagata
Date Deposited: 13 Feb 2022 23:03
Last Modified: 15 Jun 2022 03:03

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