
Sources of Growth Spurts in Pacific Island Economies
Author(s) -
Duncan Ron
Publication year - 2016
Publication title -
asia and the pacific policy studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.529
H-Index - 14
ISSN - 2050-2680
DOI - 10.1002/app5.125
Subject(s) - gross domestic product , development economics , economics , narrative , product (mathematics) , economy , geography , economic geography , economic growth , linguistics , philosophy , geometry , mathematics
There has been a considerable amount of research into the growth of the Pacific island countries; however, there has been no attempt to identify episodes of growth (and non‐growth) and to identify and understand the factors behind these episodes. This narrative article examines the growth experiences of the eight small and micro states of the North and South Pacific that are members of the World Bank. The experience of Samoa and Vanuatu supports the idea that economic reform can lead to growth spurts. Overall, the narratives suggest that unless aid leads to changes in institutions and policies, it does not have long‐lasting positive growth impacts. As experience in the Federated States of Micronesia and the Republic of the Marshall Islands appears to show, substantial aid may raise Gross Domestic Product (GDP) growth for short periods, but may well have very adverse impacts over the long run.