Financial sector development and growth in Fiji: an analysis of credit boom and its implications

Jayaraman, Tiruvalangadu K. and Choong, C.K. (2007) Financial sector development and growth in Fiji: an analysis of credit boom and its implications. The Asia-Pacific Economic Journal, 5 (1). pp. 1-20. ISSN 1354-7860

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Abstract

Fiji witnessed strong growth in domestic private sector credit for the continuous of four years from 2001. Aside from contributing to Fiji’s economic recovery, the credit expansion resulted in deteriorating annual trade balances. Examining the relationship between private sector credit, economic growth and trade balance, this paper finds the presence of a long-run relationship with linkage from domestic private sector credit to economic growth but not vice versa. Further, the results indicate evidence of a bi-directional short-run causality between the variables suggesting that private sector credit not only promoted economic growth, but also affected trade balance.

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 Economics
Depositing User:	Ms Mereoni Camailakeba
Date Deposited:	25 May 2007 04:26
Last Modified:	10 Jul 2012 08:24
URI:	https://repository.usp.ac.fj/id/eprint/273

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