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Exploring the nexus between trade, visitor arrivals, remittances and income in the Pacific: a study of Vanuatu

Kumar, Ronald R. and Naidu, Vijay and Kumar, R. (2011) Exploring the nexus between trade, visitor arrivals, remittances and income in the Pacific: a study of Vanuatu. Acta Universitatis Danubius. Œconomica, 7 (4). pp. 199-218. ISSN 2065-0175

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    Abstract

    We explore the contributions of trade openness, remittance inflows and expansion in tourism towards improving income in Vanuatu over the periods 1983-2009 using the augmented Solow approach and the ARDL bounds test. The results show trade openness and remittances have a positive and statistically significant effect on the long run growth of the economy while tourism expansion is not statistically significant. For a broad-based development policy we propose: remittance inflows need to be encouraged and additional remittance markets to be explored; trade negotiations with specific focus on temporary movement of natural persons need to be prioritized; and ensuring access to financial services and technology to rural and outer islands in Vanuatu. To confine to diversity of the economy, there is a further need to develop tourism infrastructure besides putting policies in place to ensure that tourism sector operations benefit trickle down to the grassroots level of the society.

    Item Type: Journal Article
    Subjects: H Social Sciences > HD Industries. Land use. Labor
    H Social Sciences > HG Finance
    Divisions: Faculty of Business and Economics (FBE) > School of Government, Development and International Affairs
    Faculty of Business and Economics (FBE) > School of Economics
    Depositing User: Ms Shalni Sanjana
    Date Deposited: 13 Jun 2011 20:24
    Last Modified: 11 Jul 2012 17:22
    URI: http://repository.usp.ac.fj/id/eprint/4693
    UNSPECIFIED

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