The Pacific Speed of Growth: How Fast Can It Be and What Determines It?

By Yongzheng Yang, Hong Chen, Shiu raj Singh, Baljeet Singh

May 9, 2013

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Yongzheng Yang, Hong Chen, Shiu raj Singh, and Baljeet Singh. The Pacific Speed of Growth: How Fast Can It Be and What Determines It?, (USA: International Monetary Fund, 2013) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This study aims to test within a relatively homogeneous group of small states what differentiates the growth performance of Pacific island countries (PICs) from their peers. We find that PICs are disadvantaged by distance and hampered by lower investment and exports compared with other small island states, but greater political stability, catch-up effects from lower initial incomes, and slower population growth have helped offset some of these disadvantages. On balance, policy-related factors, together with geography-related disadvantages, have led to growth rates in PICs that are much lower than in other small states. We also examine how real exchange rate appreciation, unfavorable developments in the external trade environment, and rising international transport costs may have contributed to PICs’ slower growth over the past decade.

Subject: Competition, Exports, Financial markets, Foreign exchange, Imports, International trade, National accounts, Real exchange rates, Transportation

Keywords: Aid, Asia and Pacific, Australia and New Zealand, Competition, Convergence, Economic recovery, Exports, Financial crisis, Global, Growth, Growth performance, Growth rebound, Imports, Investment exports, Pacific island countries, Pacific Islands, PIC economy, PIC export, PIC government, PIC growth rebound, Real exchange rates, Remoteness, Small states, Trade pattern, Transportation, Visitor arrival, Volatility, WP

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2013/104
Stock No:

WPIEA2013104
ISBN:

9781484399040
ISSN:

1018-5941

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