Macroeconomics Commons^™

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 …

In this paper, we explore the role of trade openness, overseas development aid (ODA), remittance inflows and financial development vis-à-vis income in Pakistan for the periods 1980-2010 using the bounds procedure within the augmented Solow-model approach. In the long-run, trade openness, ODA, and remittances have a significant positive effect on the income level, while financial development is not statistically significant. In the short run, ODA has contributed positively towards income growth while remittances, trade openness and financial development have lagged negative effects, thus underscoring somewhat different behaviour of aid and remittance inflows. Accordingly, for development policy discourse, we emphasise the …

In this study, we explore the contribution from agriculture, manufacturing and services to the economic growth of Fiji. The results show in the long-run, services sector has the largest contribution (0.91 percent), followed by manufacturing (0.88 percent) and agriculture (0.22 percent). In the short run, mixed contribution from manufacturing and services due to short-run shocks and negative contribution from agriculture due to poor performances of key agricultural activities raises concern for long term economic sustainability. Therefore, key sub-sector integrated policies and reforms to improve and capitalise on agriculture, manufacturing and services are put forward as pro-growth measures for sustainable development …