The Pacific Speed of Growth: How Fast Can It Be and What Determines It?
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
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.
Series:
Working Paper No. 2013/104
Subject:
Competition Exports Financial markets Foreign exchange Imports International trade National accounts Real exchange rates Transportation
English
Publication Date:
May 9, 2013
ISBN/ISSN:
9781484399040/1018-5941
Stock No:
WPIEA2013104
Pages:
44
Please address any questions about this title to publications@imf.org