Pacific Island Countries: In Search of a Trade Strategy
This paper examines the role of international trade for economic prosperity in Pacific island countries (PICs), discusses their comparative advantage, and explores the potential for trade, and tourism in particular, to serve as a locomotive for inclusive economic growth. We find the trade performanc...
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| Format: | Article |
| Language: | English |
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University of Warsaw
2019-08-01
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| Series: | Journal of Banking and Financial Economics |
| Subjects: | |
| Online Access: | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1043&context=jbfe |
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| _version_ | 1846145126907248640 |
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| author | Hong Chen Lanieta Rauqeuqe Shiu Raj Singh Yiqun Wu Yongzheng Yang |
| author_facet | Hong Chen Lanieta Rauqeuqe Shiu Raj Singh Yiqun Wu Yongzheng Yang |
| author_sort | Hong Chen |
| collection | DOAJ |
| description | This paper examines the role of international trade for economic prosperity in Pacific island countries (PICs), discusses their comparative advantage, and explores the potential for trade, and tourism in particular, to serve as a locomotive for inclusive economic growth. We find the trade performance in PICs has been generally weak over the past decade, with the exception of resource-rich countries. Small country size and remoteness from global economic centers may have contributed to this relatively poor performance. Using the gravity models to analyze the determinants of merchandise trade and tourism in PICs, we find tourism in these countries faces more favorable conditions for growth than goods exports. Further, we place our analysis in the context of the eastward shift of global economic gravity, focusing on emerging Asia as a source of demand for resource-based goods and services. We argue that the emergence of Asia as a dynamic global economic region presents PICs with an unprecedented opportunity to develop trade, particularly tourism, although traditional markets will remain important for a long time to come. Moreover, if stronger synergies can be established between tourism, agriculture, and fisheries, Pacific island countries stand a better chance to improve broad-based growth. |
| format | Article |
| id | doaj-art-3be4ce94f9d14ea88257fdd2ea46b076 |
| institution | Kabale University |
| issn | 2353-6845 |
| language | English |
| publishDate | 2019-08-01 |
| publisher | University of Warsaw |
| record_format | Article |
| series | Journal of Banking and Financial Economics |
| spelling | doaj-art-3be4ce94f9d14ea88257fdd2ea46b0762024-12-02T06:17:22ZengUniversity of WarsawJournal of Banking and Financial Economics2353-68452019-08-0120192568010.7172/2353-6845.jbfe.2019.2.4Pacific Island Countries: In Search of a Trade StrategyHong Chen0https://orcid.org/0000-0002-7408-6244 Lanieta Rauqeuqe1https://orcid.org/0000-0003-4540-9187 Shiu Raj Singh2https://orcid.org/0000-0002-2176-1736Yiqun Wu3https://orcid.org/0000-0002-3470-1484Yongzheng Yang4https://orcid.org/0000-0002-3341-3149Fujian University of Technology, China Reserve Bank of Fiji, Fiji Asian Development Bank, PhilippinesAsian Development Bank, PhilippinesInternational Monetary Fund, United States This paper examines the role of international trade for economic prosperity in Pacific island countries (PICs), discusses their comparative advantage, and explores the potential for trade, and tourism in particular, to serve as a locomotive for inclusive economic growth. We find the trade performance in PICs has been generally weak over the past decade, with the exception of resource-rich countries. Small country size and remoteness from global economic centers may have contributed to this relatively poor performance. Using the gravity models to analyze the determinants of merchandise trade and tourism in PICs, we find tourism in these countries faces more favorable conditions for growth than goods exports. Further, we place our analysis in the context of the eastward shift of global economic gravity, focusing on emerging Asia as a source of demand for resource-based goods and services. We argue that the emergence of Asia as a dynamic global economic region presents PICs with an unprecedented opportunity to develop trade, particularly tourism, although traditional markets will remain important for a long time to come. Moreover, if stronger synergies can be established between tourism, agriculture, and fisheries, Pacific island countries stand a better chance to improve broad-based growth.https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1043&context=jbfepacific island countriestradetourismagricultureinclusive growth |
| spellingShingle | Hong Chen Lanieta Rauqeuqe Shiu Raj Singh Yiqun Wu Yongzheng Yang Pacific Island Countries: In Search of a Trade Strategy Journal of Banking and Financial Economics pacific island countries trade tourism agriculture inclusive growth |
| title | Pacific Island Countries: In Search of a Trade Strategy |
| title_full | Pacific Island Countries: In Search of a Trade Strategy |
| title_fullStr | Pacific Island Countries: In Search of a Trade Strategy |
| title_full_unstemmed | Pacific Island Countries: In Search of a Trade Strategy |
| title_short | Pacific Island Countries: In Search of a Trade Strategy |
| title_sort | pacific island countries in search of a trade strategy |
| topic | pacific island countries trade tourism agriculture inclusive growth |
| url | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1043&context=jbfe |
| work_keys_str_mv | AT hongchen pacificislandcountriesinsearchofatradestrategy AT lanietarauqeuqe pacificislandcountriesinsearchofatradestrategy AT shiurajsingh pacificislandcountriesinsearchofatradestrategy AT yiqunwu pacificislandcountriesinsearchofatradestrategy AT yongzhengyang pacificislandcountriesinsearchofatradestrategy |