Analysis of Fiji’s Export and Its Impact on Economic Growth

Abstract

Exports are vital for Fiji's economy as it contributes significantly to its gross domestic product (GDP) and economic growth. The export data over the years show very slow growth and is gradually increasing. Fiji's GDP data show that GDP is gradually increasing. Thus, Fiji's economic growth is also increasing at a steady rate. This study aims to measure the relationship between exports and economic growth in Fiji. A regression analysis on data collected for Fiji from 2000-2015 shows that there is a strong positive relationship between exports and economic growth. Thus, when exports increase, economic growth also increases. Potential sectors that can be further developed to boost Fiji's exports are sugar, garment, tourism and agriculture. The government should restrict imports through import quotas, tariffs and embargoes and give subsidies and tax incentives to potential export sectors to boost domestic production and increase exports. The government's motive is to increase export incentives and promote Fiji made products both locally and overseas. Thus, this leads to an increase in exports, improves the trade balance and economic growth. This research article was undertaken to carry out research to investigate the link between Fiji's export and economic growth and highlight ways and potential sectors to increase Fiji's export and reduce imports.

Export and Economic Growth Nexus in the GCC Countries: A panel Data Approach

“…This might find its justification in the fact that most of high income developing countries enjoy high consumption level which resulted in importing final goods rather than a factor of production. This result is similar to that obtained by Altaee et al (2016), Taghavi (2012), Greenway and Hine (2003), and Raj & Chand (2017).…”

Do Real Interest Rate, Gross Domestic Savings and Net Exports Matter in Economic Growth? Evidence from Indonesia

“…In other words, when net exports experienced shocks (increase), then it is assumed they will reduce economic growth. These results are not consistent with the hypothesis formulated and did not support findings by Raj and Chand, (2017); Tsen (2007) who revealed that net exports have a significant positive effect on economic growth.…”

“…The results showed that there is a one-way relationship where economic growth encourages net exports in Indonesia, Malaysia, the Philippines, and Thailand. Raj and Chand (2017) found that there is a strong positive relationship between exports and economic growth. Furthermore, a prior study by Hye et al (2016) found that export value was the key to the success of China's economy both in the short and long term in the 1975-2009 period.…”

Determinants of Exports in a Small and Vulnerable Economy: Fiji Islands—A Disaggregated Analysis

“…1a). The downward trend has been attributed to structural problems facing Fiji's commodity exports (especially the sugar industry), the lack of investment, adverse weather conditions, and declining productivity (Narayan and Prasad 2003;Narayan and Narayan 2004;Raj and Chand 2017). It could also be due to a reduced drive to promote these industries further by adopting creative ideas in secondary production, getting private investors to advance creative destruction, and exploring new areas of exports.…”