The economic uncertainty via coups on Fijian economic growth: modelling the effect over varying sample sizes and periods
by Gyanendra Singh Sisodia; Alberto Ibanez; Murale Venugopalan
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 12, No. 6, 2019

Abstract: This study aims to examine the impact of economic uncertainty via coups on the growth of Fiji's GDP. During coup and post-coup periods, uncertainty disrupts the economic and political situation of the country, ultimately affecting economic growth. Investment, merchandise imports, inflation and government net consumption expenditure are the variables under investigation. This study employs the time series model over five different periods, from 1970 to 2016, in order to estimate the effect of coups on economic growth. Merchandise imports and government spending exert the greatest effect on economic growth in Fiji along the five coup periods under study. Based on the findings of this study, we encourage policy makers in Fiji to rely on government consumption expenditures in order to promote economic growth during recession periods and foster it during expansion times. Imports, as long as they provide technology and knowledge transfer, might as well assist in fostering economic growth.

Online publication date: Fri, 14-Feb-2020

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