International Tourism and Bilateral Trade in Fiji: An Empirical Examination of Their Interdependence

Makun, Keshmeer (2025) International Tourism and Bilateral Trade in Fiji: An Empirical Examination of Their Interdependence. The Journal of Pacific Studies, 45 . pp. 38-52. ISSN 1011-3029

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Abstract

This paper examines the relationship between international trade and tourism inflows using time series econometric techniques. Using Data for Fiji and two major trade and tourism partners, Australia and New Zealand, the paper examines this relationship both at aggregate and bilateral levels. The bounds cointegration test reveals a significant long-run relationship between Fiji’s trade series and tourism inflows. Granger causality with an error model shows evidence of significant
short-run and long-run causality between trade series and tourism inflows. The bilateral analysis shows unidirectional causality from trade to tourism with Australia, while short-run bidirectional (trade and tourism) and long-run unidirectional (trade to tourism) causality in the case of New Zealand. The empirical findings highlight some significant causality patterns that are valuable for policy design to foster international tourism inflows.

Item Type:	Journal Article
Uncontrolled Keywords:	Australia; Bilateral Trade; Export; Fiji; Import; International Tourism Inflows; New Zealand
Subjects:	H Social Sciences > HG Finance
Divisions:	School of Accounting, Finance and Economics (SAFE)
Depositing User:	Nirma Narayan
Date Deposited:	17 Mar 2026 00:54
Last Modified:	17 Mar 2026 00:54
URI:	https://repository.usp.ac.fj/id/eprint/15302

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