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Aid and economic growth in Pacific Islands: an empirical study of aid effectiveness in Fiji

Jayaraman, Tiruvalangadu K. and Choong, C.K. (2006) Aid and economic growth in Pacific Islands: an empirical study of aid effectiveness in Fiji. School of Economics, the University of the South Pacific, Suva, Fiji.

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Abstract

Pacific island countries (PICs), ever since their independence in the second half of the last century, have been among the world's top ten recipients of official development assistance (ODA) on a per capita basis. Until the mid 1990s, most of them were receiving aid from their ernstwhile colonial masters for budgetary support. With the introduction of reforms in ODA delivery in the late 1990s with focus on program-and-project-tied aid, it was expected that aid would directly facilitate creation of much needed growth enhancing infrastructures, physical as well as social, since domestic savings were found to be insufficient to finance them. However, continued stagnation in some PICs and deterioration in some others have been causing concerns. This paper seeks to examine the effectiveness of aid by undertaking a case study of Fiji, which has a longer time series data needed for econometric investigation. Based on the study findings, the paper lists some policy conclusions relevant to the region.

Item Type: Other
Additional Information: Working Paper 2006/15.
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Business and Economics (FBE) > School of Economics
Depositing User: Ms Neha Harakh
Date Deposited: 21 Mar 2006 13:26
Last Modified: 27 Jun 2012 18:21
URI: http://repository.usp.ac.fj/id/eprint/3875
UNSPECIFIED

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