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 08:24
Last Modified:	11 Jul 2012 05:22
URI:	http://repository.usp.ac.fj/id/eprint/4693

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